Ivory Corporation manufactures two products (A and B). The overhead costs have been divided into four costpoolsthat use the following activity drivers:ProductNumber of Orders Number of Set-upsNumber of Labor Labor HoursTransactions20351,0001,500Rs.120,000A75B570125Cost per poolRs.15,000Rs.8,400Rs.40,000Required:a) Compute the allocation rates for each of the activity drivers listed.b) Allocate the overhead cost to Product A and B using activity-based-costing.c) Compute the overhead rate using machine hours under the functional based costing system.d) Allocate the overhead cost to Product A and B using the functional-based costing system overhead ratecalculated in part ©. Hunter Company manufactures two products (XX and YY). The overhead costs have been divided into four costpools that use the following activity drivers.Number of Labor Labor HoursTransactionsProductNumber of Orders Number of Set-ups6020502,000XXYY208070500Cost per poolRs.16,000Rs.13,000Rs.2,400Rs.20,000Required:a) Compute the allocation rates for each of the activity drivers listed.b) Allocate the overhead costs to product XX and product YY using activity-based costing.c) Compute the overhead rate using machine hours under the functional-based costing system.d) Allocate the overhead cost to Product XX and YY using the functional-based costing system overhead ratecalculated in part ©.

Name: Ivory Corporation manufactures two products (A and B). The overhead c
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Description: Ivory Corporation manufactures two products (A and B). The overhead costs have been divided into four costpoolsthat use the following activity drivers:ProductNumber of Orders Number of Set-upsNumber of Labor Labor HoursTransactions20351,0001,500Rs.1

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Ivory Corporation manufactures two products (A and B). The overhead costs have been divided into four cost poolsthat use the following activity drivers: Product Number of Orders Number of Set-ups | Number of Labor Labor Hours Transactions 1,000 1,500 Rs.120,000 20 35 75 A 5 70 125 Cost per pool Rs.15,000 Rs.8,400 Rs.40,000 Required: a) Compute the allocation rates for each of the activity drivers listed. b) Allocate the overhead cost to Product A and B using activity-based-costing. c) Compute the overhead rate using machine hours under the functional based costing system. d) Allocate the overhead cost to Product A and B using the functional-based costing system overhead rate calculated in part

Ivory Corporation manufactures two products (A and B). The overhead costs have been divided into four cost poolsthat use the following activity drivers: Product Number of Orders Number of Set-ups | Number of Labor Labor Hours Transactions 1,000 1,500 Rs.120,000 20 35 75 A 5 70 125 Cost per pool Rs.15,000 Rs.8,400 Rs.40,000 Required: a) Compute the allocation rates for each of the activity drivers listed. b) Allocate the overhead cost to Product A and B using activity-based-costing. c) Compute the overhead rate using machine hours under the functional based costing system. d) Allocate the overhead cost to Product A and B using the functional-based costing system overhead rate calculated in part

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section: Chapter Questions

Problem 111P

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