Isadore S Implements Inc Manufactures Peris And Mechanical Pencils Often Used For Gifts Overhead Costs Are Currently 1 (41.77 KiB) Viewed 48 times
Isadore S Implements Inc Manufactures Peris And Mechanical Pencils Often Used For Gifts Overhead Costs Are Currently 2 (43.41 KiB) Viewed 48 times
Isadore's Implements, Inc., manufactures peris and mechanical pencils often used for gifts. Overhead costs are currently allocated using direct labor-hours, but the controller has recommended an activity-based costing system using the following data: Activity Setting up Inspecting Packing and shipping. Total overhead Cost Driver Poncils Pens Number of setups Number of parts Number of boxes shipped Overhead Cost $ 86,000 38,400 62,500 $186,900 Cost Driver Volume Pencils Pens 16 5 40,000 Required: a. Compute the amount of overhead to be allocated to each product under activity-based costing. b. Compute the amount of overhead to be allocated to each product using labor-hours as the allocation base. Assume that the number of labor-hours required to assemble each box is 0.1 for pencils and 0.1 for pens and that 40,000 boxes of pencils and 85,000 boxes of pens were produced during the period. Complete this question by entering your answers in the tabs below. 27 7 85,000 Required A Required B Compute the amount of overhead to be allocated to each product under activity-based costing. (Do not round intermediate calculations.)
Required: a. Compute the amount of overhead to be allocated to each product under activity-based costing. b. Compute the amount of overhead to be allocated to each product using labor-hours as the allocation base. Assume that the number of labor-hours required to assemble each box is 0.1 for pencils and 0.1 for pens and that 40,000 boxes of pencils and 85,000 boxes of pens were produced during the period. Complete this question by entering your answers in the tabs below. Required A Required B Compute the amount of overhead to be allocated to each product using labor-hours as the allocation base. Assume that the number of labor-hours required to assemble each box is 0.1 for pencils and 0.1 for pens and that 40,000 boxes of pencils and 85,000 boxes of pens were produced during the period. (Do not round intermediate calculations and round your final answers to the nearest whole dollar.) Pencils Pens Overhead Required A Show less A
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