E4-13 Assigning Costs Using Treditional System, ABC System [LO 41, 43,44,45,46 t

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 search

Explanation / 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

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