Chapter 6 Activity Based Costing Poldberg Co. uses activity-based costing for al
ID: 2342347 • Letter: C
Question
Chapter 6 Activity Based Costing Poldberg Co. uses activity-based costing for all of its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity based costing system Overhead costs: Wages & Salaries Factory Supplies Total $806,000 488.000 $1.294,000 Distribution of resource consumption Clean-Up Inspection Other 18% 32% Total 100% 100% Activity Cost Pools 22% 48% 60% 20% Wages and salaries Factory Supplies The amount of activity for the year is as follows Activity 1,000 Batches Activity Cost Pool Clean-Up Inspection How much OVERHEAD cost would be allocated to a "Customer A," who initiated 1 25 batches and 55 inspections in a year? (Please complete the template below.) 400 InspectionsExplanation / Answer
b.) Customer Margin Report ;-
Sales 580,000
Direct material 230,000
Direct labour 150,000
Selling cost 80,000
OH Cost-
Set up cost 51,445
Inspection 79,915
Contribution margin ($11,360)
Activity cost pool Clean-up Inspection others Total Wages and salaries 177320 483600 145080 806000 Factory supplies 234240 97600 156160 488000 Total 411,560 581,200 301,240 1,294,000