Question
Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system
Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways. (Round answers to 2 decimal places, e.g. 12.25.)
| WATERWAYS CORPORATION | ||||||||
| Activity Cost Pools | Cost Drivers | Estimated Overhead | Expected Use of Cost Drivers per Activity | Actual Use of Drivers | ||||
| Irrigation installation | Labor cost | $2,076,240 | 12,660 | 12,639 | ||||
| Machining (all machine use) | Machine hours | 1,743,600 | 34,872,000 | 34,873,000 | ||||
| Customer orders | Number of orders | 30,360 | 2,530 | 2,495 | ||||
| Shipping | none (direct) | N/A | N/A | traced directly | ||||
| Design | Cost per design | 904 | 8 | 7 | ||||
| Selling | Number of sales calls | 336,600 | 19,800 | 20,010 | ||||
| WATERWAYS CORPORATION | ||||
| Activity Cost Pools | Activity- Based Overhead Rates | Actual Cost Assigned | ||
| Irrigation installation | $ | $ | ||
| Machining (all machine use) | ||||
| Customer orders | ||||
| Design | ||||
| Selling | ||||
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The Teams Audit
Authors: Kevin Barham
1st Edition
1907766030, 978-1907766039
