ACC 560 WEEK 3 Chapter 4 Brief Exercises 7 and 12; Exercises 1, 6, and 14
BE4-7
Spud, Inc. a manufacturer of gourmet potato chips, employs activitybased costing. The budgeted data for each of the activity cost pools is provided below for the year 2017.
Activity Cost Pools Estimated Overhead Expected Use of Cost Drivers per Activity
Ordering and receiving $ 84,000 12,000 orders
Food processing 480,000 60,000 machine hours
Packaging 1,760,000 440,000 labor hours
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