Finch Industries Produces Two Electronic Decoders P And Q Decoder P Is More Sophisticated And Requires More Programmin 1 (75.33 KiB) Viewed 10 times
Finch Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows: Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost Expected activity for each product follows: Decoder P Decoder Q Total Number of Units 18,000 35,000 53,000 Number of Programming Hours 2,400 1,400 3,800 Cost Pool Total $ 100,700 92,720 8,910 9,450 $ 211,780 Number of Inspections 193 137 330 Cost Driver Number of units produced Number of programming hours Number of inspections Number of tests Number of Tests 1,600 1,100 2,700
Required A Required B Compute the overhead rate for each activity pool. Note: Round your answers to 2 decimal places. Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Allocation Rate < Required A Required B >
b. Determine the overhead cost allocated to each product. Complete this question by entering your answers in the tabs below. Required A Required B Determine the overhead cost allocated to each product. Note: Round intermediate calculations to 2 decimal places. Total Allocated Cost Decoder P Decoder Q < Required A Required B >
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