Estimated Еxpected Activity Activity Cost Pool Activity Measure Machine related machine hours Machine setups number of setups Purchase orders number of orders General factory direct labor hours Totals Overhead Cost $1,500,000 $300,000 50,000 MHs 750 setups $192,500 3,500 orders $504,000 $2,496,500 36,000 DLHS Activity Measure machine hours number of setups Product Delta Product Sigma 28,000 22,000 350 400 number of orders 1,900 1,600 direct labor hours 20,000 16,000
Estimated Еxpected Activity Activity Cost Pool Activity Measure Machine related machine hours Machine setups number of setups Purchase orders number of orders General factory direct labor hours Totals Overhead Cost $1,500,000 $300,000 50,000 MHs 750 setups $192,500 3,500 orders $504,000 $2,496,500 36,000 DLHS Activity Measure machine hours number of setups Product Delta Product Sigma 28,000 22,000 350 400 number of orders 1,900 1,600 direct labor hours 20,000 16,000
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...
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- What is the activity rate based on machine hours?
- Activity rate based on the number of machine setups?
- Activity rate based on the number of purchase orders?
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