The following is taken from Clausen Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead cost allocated to Dept. 1 using activity-based costing. Direct Labor Hours Machine Hours Operating Dept. 1 1,020 9,600 Operating Dept. 2 2,380 6,400 Totals 3,400 16,000 Factory overhead costs Rent and utilities $ 22,900 Indirect labor 18,500 Depreciation – Equipment 15,600 Total factory overhead
The following is taken from Clausen Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead cost allocated to Dept. 1 using activity-based costing. Direct Labor Hours Machine Hours Operating Dept. 1 1,020 9,600 Operating Dept. 2 2,380 6,400 Totals 3,400 16,000 Factory overhead costs Rent and utilities $ 22,900 Indirect labor 18,500 Depreciation – Equipment 15,600 Total factory overhead
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 3E: The following data appeared in the accounting records of Craig Manufacturing Inc., which uses the...
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The following is taken from Clausen Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead cost allocated to Dept. 1 using activity-based costing.
Direct Labor Hours | Machine Hours | ||||||||
Operating Dept. 1 | 1,020 | 9,600 | |||||||
Operating Dept. 2 | 2,380 | 6,400 | |||||||
Totals | 3,400 | 16,000 | |||||||
Rent and utilities | $ | 22,900 | |||||||
Indirect labor | 18,500 | ||||||||
15,600 | |||||||||
Total factory overhead | $ | 57,000 | |||||||
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