Durban Metal Products makes specialty metal parts and uses activity-based costing for internal decision-making purposes. The company has four activity cost pools as follows: Activity Cost Pool Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Order size Customer orders Product testing Selling Number of sales calls Activity Rate $ 17.90 per direct labor-hour $ 369.00 per customer order $ 82.00 per testing hour $ 1,484.00 per sales call The company's owner wants to know the cost of a customer order requiring 160 direct labor-hours, 19 hours of product testing, and 6 sales calls. Required: What is the total overhead cost assigned to this order? Activity Cost Pool ABC Cost Order size Customer orders Product testing Selling Total overhead cost $ 0
Durban Metal Products makes specialty metal parts and uses activity-based costing for internal decision-making purposes. The company has four activity cost pools as follows: Activity Cost Pool Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Order size Customer orders Product testing Selling Number of sales calls Activity Rate $ 17.90 per direct labor-hour $ 369.00 per customer order $ 82.00 per testing hour $ 1,484.00 per sales call The company's owner wants to know the cost of a customer order requiring 160 direct labor-hours, 19 hours of product testing, and 6 sales calls. Required: What is the total overhead cost assigned to this order? Activity Cost Pool ABC Cost Order size Customer orders Product testing Selling Total overhead cost $ 0
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...
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