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Use the spreadsheet to determine total overhead assigned to both orders based on the activity-based costing system. Activity cost pool Activity Measure Activity Rate Order
Use the spreadsheet to determine total overhead assigned to both orders based on the activity-based costing system.
Activity cost pool | Activity Measure | Activity Rate | |
Order size | Direct labor hours | $14 per direct labor hour | |
Customer orders | Customer orders | $114 per customer order | |
Quality testing | Test hours | $74 per hour | |
Sales | Sales calls | $634 per sales call | |
Order #1 required 475 direct labor hours, 9 hours of quality testing, and 7 sales calls | |||
Order #2 required 115 direct labor hours, 48 hours of quality testing, and 19 sales calls | |||
Total overhead cost assigned | |||
Activity Cost Pool | Order #1 | Order #2 | |
Total Overhead cost |
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