ACC 560 Week 4 Homework Chapter 5 and Chapter 6 ( E5-6 , E5-9 , E5-13 , E6-2 , E6-7 , E6-12 )
Setup time |
90,000 |
Number |
of setups |
|
|
Supervision |
60,000 |
Direct |
labor cost |
|
|
Expected Use of Cost Drivers per Product
Residential
Commercial
Scheduling and travel 750 500
Setup time 350 250
Instructions
a . Compute the activity-based overhead rates for each of the three cost pools , and determine the overhead cost assigned to each product line .
b . Compute the operating income for each product line , using the activity-based overhead rates .
c . What do you believe Peggy Kingman should do ? ==============================================
ACC 560 Week 4 Homework Chapter 5 and Chapter 6 ( E5-6 , E5-9 , E5-13 , E6-2 , E6-7 , E6-12 )
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