A company has identified the following overhead.costs and cost drivers for the c
ID: 2335580 • Letter: A
Question
A company has identified the following overhead.costs and cost drivers for the coming year: item Cost driver Budgeted costs $ Budgeted activity level Machine setup Inspection Material handling Engineering Total 20,000 130,000 80,000 50,000 280,000 200 1C 6,500 8,000 1,000 # of setups # of inspections #of material moves Engineering hours The following information was collected on three jobs that were completed during the year: ob 103 8,000 4,000 200 4 30 50 10 Job 101 5,000 2,000 100 Job 102 12,000 2,000 50 Direct materials Direct labor Units completed # of setups # of inspections # of material moves Engineering hours 20 30 10 10 10 50 Answer the following questions: What is the overhead allocation rate for Machine setup activity? 1 point 1. 1 Point 2. What is the overhead allocation rate for inspection activity? 3. What is the overhead allocation rate for material moves? 1 point 1 point 4. What is the overhead allocation rate for engineering activity?Explanation / Answer
Answer
1
100.00
2
20.00
3
10.00
4
50.00
5
320.00
6
98.00
7
$1300
Budgeted Cost Budgeted Activity Level Ovehead Allocation Rate Machine Setups 20000 200 100.00 Inspection 130000 6500 20.00 Material Handeling 80000 8000 10.00 Engineering 50000 1000 50.00