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Expected activity for each product follows. Number of Units Number of Programming Hours Number of Inspections Number of Tests Decoder P 16,000 2,000 190 1,400 Decoder Q 36,000 1,500 60 1,100 Total 52,000 3,500 250 2,500 Required a. Compute the overhead rate for each activity pool. b. Determine the overhead cost allocated to each product.

Expected activity for each product follows. Number of Units Number of Programming Hours Number of Inspections Number of Tests Decoder P 16,000 2,000 190 1,400 Decoder Q 36,000 1,500 60 1,100 Total 52,000 3,500 250 2,500 Required a. Compute the overhead rate for each activity pool. b. Determine the overhead cost allocated to each product.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...
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Snowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows.

 

*Need help for informatio going into excel*

Expected activity for each product follows. Number of Units Number of Programming Hours Number of Inspections Number of Tests Decoder P 16,000 2,000 190 1,400 Decoder Q 36,000 1,500 60 1,100 Total 52,000 3,500 250 2,500 Required a. Compute the overhead rate for each activity pool. b. Determine the overhead cost allocated to each product.
Transcribed Image Text:Expected activity for each product follows. Number of Units Number of Programming Hours Number of Inspections Number of Tests Decoder P 16,000 2,000 190 1,400 Decoder Q 36,000 1,500 60 1,100 Total 52,000 3,500 250 2,500 Required a. Compute the overhead rate for each activity pool. b. Determine the overhead cost allocated to each product.
Snowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the company wants to use activity- based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows. Activity Pools Cost Pool Total Cost Driver Repair and maintenance on assembly machine $ 104,000 Number of units produced Programming cost 168,000 Number of programming hours Software inspections 12,000 Number of inspections Product testing 16,000 Number of tests Total overhead cost $300,000
Transcribed Image Text:Snowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the company wants to use activity- based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows. Activity Pools Cost Pool Total Cost Driver Repair and maintenance on assembly machine $ 104,000 Number of units produced Programming cost 168,000 Number of programming hours Software inspections 12,000 Number of inspections Product testing 16,000 Number of tests Total overhead cost $300,000
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