Abdur Rahman metal products ltd makes special metal parts used in applications. The activity based...
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Accounting
Abdur Rahman metal products ltd makes special metal parts used in applications. The activity based costing system of the company have identified the following activity cost pools. Measures and rates-
Activity cost pool
Activity measures
Activity rate
Order size
Number of direct labor-hours
$16.50 per direct labor hour
Customer orders
Number of customer orders
$320 per customer order
Product testing
Number of testing hours
$89 per testing hour
selling
Number of sales calls
$1090 per sales call
The company just completed one order from my company for product xxl-201. The order required 200 direct labor hours. 4 hours of product testing and 2 sales calls.
Required- allocate the overhead costs to my company for the order of product xxl-201
Answer & Explanation
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