Davis, Managerial Accounting, 3e Helo I ctice Gradebook ORION Downloadable eText

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Davis, Managerial Accounting, 3e Helo I ctice Gradebook ORION Downloadable eTextbeok nment Question 1 ones Manufacturing Company makes two hours of 21,450. Jones recently implemented an activity based setups, and good shipped. The following is a summary of company information products. The company's budget includes $536,250 of overhead. In the past, the r costing system and had determined that overhead can be broken into three overhead pools: processed purchase orders, machine company allocated overhead based on estimated total direct labor Estimated Estimated Activities Cost Orders $70,000 5,000 orders Machine setups Shipping 12,420 26,685 $109,105 540 machine hours 59,300 shipments ?Your answer is correct. Calculate the company's overhead rate based on total direct hours The company's overhead per direct labor hour Click if you would like to Show Work for this question: Open Show Work Attempts: 1 of 1 used Privesy Polisx.2000-2018 3ohn Wiley & Soes Ins AB Rights Reserved. A Division of kinde 27

Explanation / Answer

Answer to part 1 Budgeted Overheads 536250 Total Direct Labour hours 21450 The company overhead rate (536250/21450) 25 Answer to part 2 Activity Estimated Cost Estimated Activities Overhead rates Orders Processed (70000/5000) 70000 5000 Orders 14 Per order Machine setup (12420/540) 12420 540 Machine Hours 23 Per Machine Hour Shipping (26685/59300) 26685 59300 Shipments 0.45 Per shipment

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