Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Zippy Company uses ABC to accounting for costs in it's manufacturing process. They have identified three manufacturing activities that incur manufacturing overhead costs: Materials handling,

Zippy Company uses ABC to accounting for costs in it's manufacturing process. They have identified three manufacturing activities that incur manufacturing overhead costs: Materials handling, machine setups and general factory facility support. They have determined the costs of these activities and the allocation bases to be as shown below. Calculate the total overhead allocated to JOB 510, which has 411 parts, 12 setups, and 48 direct labor hours. (note: when calculating your overhead rates, round them to four decimal places before calculating the cost of the job, for example, 23.3125). Round all calculations including your final answer to four decimal places.

Activity: Materials Handling, Overhead Cost: $6629, Allocation Base: Number of parts, 3200 total parts anticipated.

Activity: Machine Setup, Overhead Cost: $10249, Allocation Base: Number of setups, 25 total setups anticipated.

Activity: General Facilities, Overhead Cost: $91756, Allocation Base: Direct Labor Hours, 1000 total hours anticipated

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

Bed And Breakfast IRS Audit Techniques Guide

Authors: Internal Revenue Service

1st Edition

1304131793, 978-1304131799

More Books

Students also viewed these Accounting questions