Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Exercise 12-7 Allocating overheed costs among products LO 12-3 Cain Company make

ID: 2582485 • Letter: E

Question

Exercise 12-7 Allocating overheed costs among products LO 12-3 Cain Company makes three products in its factory plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include the following Faciory managers salary $276,00 Factory utility cost 122,000 143,800 Factory supplies Total overhead costs $541,800 Cain uses machine hours as the cost driver to allocat products are as follows te overhead costs. Budgeted machine hours for the Cups Tablecloths Bottles 450 Hours 900 1230 Total machine hours 2,580 Required a-ABocate the budgeted overhead costs to the products Product Allocation Rate x Weight of Base Allocated Cost 2 ERSC Additional Sy pdf ^ EFSC Additional Sy--Pdf ^ Type here to search

Explanation / Answer

Allocation rate = Total over head cost/ total machine hour

                           = $ 541,800/2,580 = $ 210

Products

Allocation Rate

Weight of Base

Allocated Cost

Cups

$                      210

450

$            94,500

Tablecloths

$                      210

900

$          189,000

Bottles

$                      210

1,230

$          258,300

Total

2,580

$          541,800

Products

Allocation Rate

Weight of Base

Allocated Cost

Cups

$                      210

450

$            94,500

Tablecloths

$                      210

900

$          189,000

Bottles

$                      210

1,230

$          258,300

Total

2,580

$          541,800

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote