Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. active works products is a global manufacturing co

Active Works Products is a global manufacturing company specializing in athletic wear and sporting goods....

80.2K

Verified Solution

Question

Accounting

Active Works Products is a global manufacturing company specializing in athletic wear and sporting goods. The company decided to adapt an activity based costing system which has five activity cost pools:

Activity Cost Pool Estimated Overhead Cost Expected Activity
Labor-related $28,000 2,000 direct labor hours (DLH)
Purchase orders $30,000 600 orders
Product testing $27,200 800 tests
Packaging $64,600 3800 packages
General Factory $50,100 2,000 direct labor hours (DLH)

You have been asked to compute the following:

1. Activity rate for each activity cost pool

2. Predetermined overhead rate using the assumption that the company uses a single predetermined overhead rate based on direct labor hours.

3. Write a brief memo to the production supervisor explaining the significance of using direct labor hours as the base for assigning manufacturing overhead costs to products.

Part 1:Activity Rate (round your answers to 2 decimal places)

Part 2:Predetermined Overhead Rate (round your answers to 2 decimal places)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Analysis: Based on this quote, do you think President Lincoln was advocating for concentrating on...

Biology
Q

Pick your favorite sport and describe what major muscles are being utilized in your given sport....

Medical Sciences
Q

negligible mass with two small balls each of mass mand electric charge Q attached to...

Physics
Q

secured at point Ex A particle of mass m and charge q is attached to...

Physics
Q

The following equation involves more than one exponential expression Solve the equation 6 x 3...

Algebra
Q

Choose the answer that best describes the graph Percent of radioactivity 100 80 60 40...

Algebra
Q

Question 1 (2 points) The format of the variable costing income...

Accounting
Q

! Required information Problem 6-50(LO 6-2)(Algo) [The following information applies to the...

Accounting
Q

Rank the accounts by seniority: Preferred Equity Long-term bond debt Common equity

Accounting
Q

Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours...

Accounting
Q

Please give an answer in excel, thanks. Question 6 (16 marks) (29 minutes)...

Finance
Q

The journal entry for recording cost of sales is to debit cost of sales expense...

Accounting