Calculating Activity Rates and Assigning Costs to Products In ABC Wayward Compan

Question

Calculating Activity Rates and Assigning Costs to Products In ABC Wayward Company makes two models of automobile navigation systems, the SeldomLost and the NeverLost. Information for Wayward follows. Wayward has monthly overhead of $521,870 that is divided into the following coat pools. The company has also compiled the following information about in chosen coat driven. Complete the following for Wayward. Select the appropriate cost driver for each cost pool and calculate the activity rate. Assign overhead costs to each product based on activity demads, Calculate the production cost per unit for each of Wayward's products.

Explanation / Answer

Wayward

1 Statement showing Cost per activity

2. Statement showing allocation of averhead cost to both the products

3. Statement showing production cost per unit

S.No. Type of Cost Amount Basis of allocation Quantity Rate per activity 1. Set up cost 170455 No of set ups 146 1167.50 2. Quality control cost 203775 No. of inspections 1650 123.50 3. maintenance cost 65700 No. of machine hours 4380 15 4. Engineering cost 81940 No.of engineering hours 964 85

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.