Chapter 6 Activity Based Costing Poldberg Co. uses activity based costing for all of its...
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Chapter 6 Activity Based Costing Poldberg Co. uses activity based costing for all of its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity based costing system Overhead costs: Wages & Salaries Factory Supplies $806,000 488.000 $1.294,000 Total Distribution of resource consumption Activity Cost Pools Wages and salaries Factory Supplies Clean Up 22% 48% Inspection 60% 20% Other 18% 32% Total 100% 100% The amount of activity for the year is as follows: Activity Cost Pool Activity Clean-Up 1,000 Batches Inspection 400 Inspections How much OVERHEAD cost would be allocated to a "Customer A," who initiated 125 batches and 55 inspections in a year? (Please complete the template below.) Using the following information, set up a Customer Margin Report using Activity Based Costing to determine the profitability of the customer. Customer A Sales $580,000 Direct Material Cost $230,000 Direct Labor Cost $150,000 Selling Cost $80,000
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