ment Problem 17-3A (Part Level Submission) and widths. All are of white oak wood

Question

ment Problem 17-3A (Part Level Submission) and widths. All are of white oak wood. Budgeted manufactu ring overhead costs for Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines $74,400 82,240 220,000 102,500 114,000 127,680 360,000 1,080,820 Inventory control (raw materials and finished goods) Total budgeted overhead costs For the last 4 years, Shaker Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2017, 100,000 machine hours are budgeted. Jeremy Nolan, the following cost drivers and their usage for the previously budgeted overhead cost pools Expected Use of Cost Drivers Handling materials Production (cutting, milling, finishing) Setting up machines Number of orders Number of moves Direct labor hours Number of setups Number of inspections 8,000 100,000 1,250 6,000

Explanation / Answer

Activity Activity rate [A] Activity used [B] Overhead assigned [A*B] Purchasing 74400/600= 124 60 7440 Handling material 82240/8000= 10.28 800 8224 Production 220000/100000= 2.2 5400 11880 Setting machine 102500/1250=82 100 8200 Inspecting 114000/6000=19 450 8550 Inventory control 127680/168000=.76 16000 12160 Utilities 360000/90000=4 8000 32000 Overhead assigned under ABC 88454

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

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