Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Waterway Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified

image text in transcribed
Waterway Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Waterway accumulated the following data relative to those activity cost pools and cost drivers. Estimated Use of Annual Overhead Data Cost Drivers per Product Estimated Use of Estimated Cost Product Product Activity Cost Cost Overhead Drivers per BC113 AD908 Pools Drivers Activity Machine setup Setups $27,000 45 27 18 Machine Machining 98,800 hours 5,200 1,040 4,160 Packing Orders 31,500 450 160 290 Using the above data, do the following: Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity Cost Estimated Estimated Use of Cost Activity-Based Pools Overhead Drivers per Activity Overhead Rates Machine setup setups per setup Machining machine hours per machine hr. Packing orders per order AD908 Activity- Based Overhead Rates Cost Assigned Prepare a schedule assigning each activity's overhead cost to the two products. BC113 Estimated Use of Activity Estimated Use of Cost Based Cost Activity Cost Drivers per Overhead Cost Drivers per Pools Product Rates Assigned Product Machine setup Machining Packing Total assigned costs $ $ Compute the overhead cost per unit for each product. (Round answers to 2 decimal places, e.g. 12.25.) BC113 AD908 Overhead cost per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Interpretation And Application Of International Standards On Auditing

Authors: Steven Collings

1st Edition

0470661127, 978-0470661123

More Books

Students also viewed these Accounting questions