E4-13 Assigning Costs Using Treditional System, ABC System [LO 41, 43,44,45,46 t
ID: 2330307 • Letter: E
Question
E4-13 Assigning Costs Using Treditional System, ABC System [LO 41, 43,44,45,46 two actihity cost pools: materials handing and setup. Pertinent data follow: 12,000 667 52 Total estimated overhead costs are $135,000, of which $115,000 is assigned to the materials handling cost pool and $20,000 is assigned to the setup cost pocl. 1. Calculate the overhead assigned to the leather case line using the traditional $ 152,762 2. Calculate the overhead assigned to the leather case line using ABC S 80,655 Over-casted O Type here to searchExplanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations 1) Overhead assigned to fabric= 12,000/20,000 *135,000 81,000.00 2) Overhead assigned to fabric case 55,300.00 3) Overapplied overhead = 81,000 - 55,300 25,700.00 Refer Below workings for above answer Particulars Amount a Activity Driver No of Activity b Activity Rate No of Activity of Fabric case d Cost Allocated to Fabric case c*d No of Activity of Leather case e Cost Allocated to Leather case c*e Material Handling 115,000.00 No of material moves 1,150.00 100.00 483.00 48,300.00 667.00 66,700.00 Setupcost pool 20,000.00 No of setups 80.00 250.00 28.00 7,000.00 52.00 13,000.00 Total Overhead 135,000.00 55,300.00 79,700.00