Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Mega Construction Company recently switched to activity-based costing (ABC) from the department allocation method. The department method allocated overhead costs at a rate of
The Mega Construction Company recently switched to activity-based costing (ABC) from the department allocation method. The department method allocated overhead costs at a rate of $60 per machine hour. The cost accountant for the Finishing Department has gathered the following data: Amount $ 85 3,500 Activity Material handling Machine setups Utilities Quality control Cost Drivers Tons of material handled Number of production runs Machine hours Number of inspections 25 500 During April, Mega purchased and used $130,000 of direct materials at $20 per ton. There were 8 production runs using a total of 15,000 machine hours in April. The manager of the Finishing Department needed 12 inspections. Actual overhead costs totaled $850,000 for the month. How much overhead costs were applied to the Work-in-Process Inventory during April using traditional costing
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started