Answer:
|
Activity Cost Pool
|
K425
|
M68
|
|
Supporting direct labor
|
9250
|
500
|
|
Machine processing
|
12000
|
200
|
|
Machine setups
|
385
|
70
|
|
Production orders
|
1870
|
340
|
|
Shipments
|
2420
|
220
|
|
Product sustaining
|
1550
|
1550
|
|
Total overhead cost
|
27475
|
2880
|
Working notes for the
above answer is as under
K425
|
Activity Cost Pool
|
Activity Rate
|
|
Activity
|
ABC Cost
|
|
K425
|
A
|
|
B
|
C=A*B
|
|
Supporting direct labor
|
10
|
per direct labor-hour
|
925
|
9250
|
|
Machine processing
|
5
|
per machine-hour
|
2400
|
12000
|
|
Machine setups
|
35
|
per setup
|
11
|
385
|
|
Production orders
|
170
|
per order
|
11
|
1870
|
|
Shipments
|
110
|
per shipment
|
22
|
2420
|
|
Product sustaining
|
775
|
per product
|
2
|
1550
|
|
Total overhead cost
|
|
|
|
27475
|
M-67
|
Activity Rate
|
|
Activity
|
ABC Cost
|
|
M67
|
A
|
|
B
|
C=A*B
|
|
Supporting direct labor
|
10
|
per direct labor-hour
|
50
|
500
|
|
Machine processing
|
5
|
per machine-hour
|
40
|
200
|
|
Machine setups
|
35
|
per setup
|
2
|
70
|
|
Production orders
|
170
|
per order
|
2
|
340
|
|
Shipments
|
110
|
per shipment
|
2
|
220
|
|
Product sustaining
|
775
|
per product
|
2
|
1550
|
|
Total overhead cost
|
|
|
|
2880
|
