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William Inc. is considering the adoption of an activity-based costing system. They have gathered the following data with regards to budgeted activities, costs, and cost
William Inc. is considering the adoption of an activity-based costing system. They have gathered the following data with regards to budgeted activities, costs, and cost drivers: Activity Budgeted Overhead Activity Driver Budgeted Per Capacity Setups $189,000 Number of setups 225 Setups Material Purchasing $27,000 Number of orders 1,350 Orders Machining $252,000 Machine hours 15,750 Machine hours Packaging $45,000 Packing orders 1,875 Packing orders What is the activity rate that would be used for Setups? HINT: remember to apply the entry rules. What is the activity rate that would be used for Material Purchasing? HINT: remember to apply the entry rules. What is the activity rate that would be used for Machining? HINT: remember to apply the entry rules. What is the activity rate that would be used for Packaging? HINT: remember to apply the entry rules. The company produces a product, Module W. The following information about actual production for the year is as follows: Units completed Module W 7,500 150 Number of setups Number of orders 450 Machine hours 9,000 Packing orders 575 Using the above information, determine the total overhead applied to all of the Module W products for the year. Using the total overhead allocated to Module W, calculate the overhead allocated to each unit of Module W. Entry Rules: Round your answer to two (2) decimal places. Examples: If your answer is $24,500.4718, enter 24500.47 If your answer is $24,500.4753, enter 24500.48 If your answer is $24,500.00, enter 24500.00 If your answer is $0.4718, enter 0.47 If your answer is ZERO, enter 0.00 Never enter $ or, when inputting numerical answers
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