Saved Help Southwest Components Recently Switched To Activity Based Costing From The Department Allocation Method The F 1 (32.36 KiB) Viewed 42 times
Saved Help Southwest Components Recently Switched To Activity Based Costing From The Department Allocation Method The F 2 (52.61 KiB) Viewed 42 times
Saved Help Southwest Components recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates: Activity Centers Materials handling Quality inspections Machine setups Running machines Cost Drivers Pounds of material handled Number of inspections Number of machine setups Number of machine-hours Rate per Cost Driver Unit $ 18 per pound $ 250 per inspection $3,000 per setup $24.00 per hour Direct materials costs were $313,000 and direct labor costs were $153,000 during July, when the Fabrication Department handled 3,900 pounds of materials, made 750 inspections, had 40 setups, and ran the machines for 15,000 hours. Required: Use T-accounts to show the flow of materials, labor, and overhead costs from the four overhead activity centers through Work in Process Inventory and out to Finished Goods Inventory.
up Save & Exit Submit Materials Inventory Beg bal Wages Payablo Beg bal End, bal End, bal Overhead Applied: Material Handling Overhead Applied: Quality Inspection Bog. bal Bog, bal End, bal End, bal Overhead Applied: Machine Setup Overhead Applied Running Machines Bog bal Beg, bal End, bal End, bal Work in Process (WIP) Inventory Fabrication Department Finished Goods Inventory Beg bal Begal End bal End. bal
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