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Packaging
440,000 labor hours
1,760,000
For 2017, the company had 11,000 orders and used 50,000
machine hours, and labor hours totaled 500,000. What is the
total overhead applied?
BE4-12
Spin Cycle Architecture uses three activity pools to apply
overhead to its projects. Each activity has a cost driver used to
allocate the overhead costs to the projects. The activities and
related overhead costs are as follows: initial concept formation
$40,000, design $300,000, and construction oversight $100,000.
The cost drivers and expected use are as follows.
Activities
Cost Drivers
Expected Use of Cost Drivers per Activity
Initial concept formation
20 Number of project changes
Design
150,000 Square feet
Construction oversight
100
Number of months
(a) Compute the predetermined overhead rate for each activity.
(b) Classify each of these activities as unit-level, batch-level,
product-level, or facility-level.
E4-1