Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. sandhill inc. manufactures two products: car wheel

Sandhill Inc. manufactures two products: car wheels and truck wheels. To determine the amount of...

70.2K

Verified Solution

Question

Accounting

Sandhill Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Thomas Taylor, has developed the following information:

image Total estimated overhead costs for the two product lines are $1,030,000.

Thomas is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the truck wheel product line because of its complexity. He therefore develops the following three activity cost pools and related cost drivers to better understand these costs:

image Calculate the activity-based overhead rates for these three cost pools.

image

Car Truck 14.000 Estimated wheels produced Direct labour hours per wheel 47.000 2 8 Activity Cost Pools Setting up machines Assembling Inspection Estimated Overhead Costs $318,000 370,000 342,000 Estimated Use of Cost Drivers 600 set-ups 37,000 labour hours 684 inspections Rate Cost Pool Setting up machines $ per set-up Assembling $ per labour hour Inspection $ per inspection

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

Name the three different aspects of body fluids that affect animal function and are therefore typically...

Medical Sciences
Q

Blocks with masses of 3.0 kg, 4.0 kg, and 5.0 kg are lined up in a...

Physics
Q

In?finance,?discounted cash flow?(DCF) analysis is a common technique of placing value on a project or company. All...

Finance
Q

How do people contract Paralytic Shellfish Poisoning PSP O inhaling mist from water that contains...

Biology
Q

Quadrilateral ABCD has vertices at A 9 6 B 2 1 C 2 5 and...

Geometry
Q

BANGUNIN SAHUR PAK mylab STAT1800 Business St

Statistics
Q

5 14 Guessing on Tests Consider a multiple choice test with a total of four...

Statistics
Q

V 28 Express a 390 angle in terms of radians A 13TT 13T radians 6...

Calculus
Q

Accounting Fundamentals Please write a reflection paper. Talk about your initial expectations of the course,...

Accounting
Q

These expenditures were incurred by Dunston Company in purchasing land: cash price $60,000; accrued taxes...

Accounting
Q

Assume the dollar per euro spot rate is .921 and the continuously compounded dollar and...

Accounting
Q

Assume that the U.S. one-year interest rate is 4% and the one-year interest rate on...

Finance