A local picnic table manufacturer has budgeted these overhead costs - ERROR: "Handling materials" is $33,350 - (note their order as you will usethe same order down below):PurchasingHandling materialsMachine setups$70,00033,33370,50025,50045,000InspectionsUtilitiesThey are considering adapting ABC costing and have estimated the cost drivers for each pool as shown (again, note their order):Cost DriverActivityOrders700Material movesMachine setupsNumber of inspectionsSquare feet1,33415,0005,000180,000Recent success has yielded an order for 1,000 tables. Assume direct labor costs per hour of $20. Determine how much the job would cost given thefollowing activities (once more, note their order for the last worksheet):ActivityOrder (units)Direct materials1,000112,70015,2005,30060Machine hoursDirect labor hoursNumber of purchase ordersNumber of material movesNumber of machine setupsNumber of inspectionsNumber of square feet occupied8001004508,000Using the following cost driver terms, complete the two worksheets below to:Number of materialManufacturingNumber of purchaseDirect labormovesoverheadordersNumber of machineNumber of inspectionsDirect materialsSquare feet occupiedsetupsPLEASE NOTE: For activity levels, use commas as needed (i.e. 1,234). Activity rates are rounded to two decimal places and shown with "$" andcommas as needed (i.e. $1,234.56). All other dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. (1) calculate the overhead assigned rate (note their order from above):Overhead CostEstimatedCost DriverActivity LevelsActivity RateItemsOverheadPurchasing$70,000Number of purchası700$100Handling$33,350Number of material1,334$25materialsMachine setups$70,500Number of machine15,000$4.70Inspections$25,500Number of inspecti5,000$5.10Utilities$45,000Square feet occupie180,000$0.25(2) calculate the total order cost (again, note their order from above):Activity Cost DriversActivity LevelsActivity RateAssigned CostsTotal Order Cost

Name: A local picnic table manufacturer has budgeted these overhead costs -
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Description: A local picnic table manufacturer has budgeted these overhead costs - ERROR: "Handling materials" is $33,350 - (note their order as you will usethe same order down below):PurchasingHandling materialsMachine setups$70,00033,33370,50025,50045,000Inspe

The overhead rate is a cost associated with the production of a product or service. Overhead costs…

Business

Accounting

hasing dling materials nine setups ections ies $70,000 33,333 70,500 25,500 45,000 re considering adapting ABC costing and have estimated the cost drivers for each pool as shown (again, note their order) Driver Activity ers erial moves hine setups aber of inspections are feet 700 1,334 15,000 5,000 180.000

hasing dling materials nine setups ections ies $70,000 33,333 70,500 25,500 45,000 re considering adapting ABC costing and have estimated the cost drivers for each pool as shown (again, note their order) Driver Activity ers erial moves hine setups aber of inspections are feet 700 1,334 15,000 5,000 180.000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 3PA: A local picnic table manufacturer has budgeted these overhead costs: They are considering adapting...

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