Compute the overhead rates using the activity-based costing approach .
Determine the difference in allocation between the two approaches Exercise 17-9
Air United , Inc . manufactures two products : missile range instruments and space pressure gauges . During April , 46 range instruments and 296 pressure gauges were produced , and overhead costs of $ 84,100 were estimated . An analysis of estimated overhead costs reveals the following activities .
Perdon Corporation manufactures safes — large mobile safes , and large walk-in stationary bank safes . As part of its annual budgeting process , Perdon is analyzing the profitability of its two products . Part of this analysis involves estimating the amount of overhead to be allocated to each product line . The information shown below relates to overhead .
Multiple Choice Question 55
An example of a cost which would not be assigned to an overhead cost pool is
Multiple Choice Question 71
Boswell Company manufactures two products , Regular and Supreme . Boswell ’ s overhead costs consist of machining , $ 3,000,000 ; and assembling , $ 1,500,000 . Information on the two products is :
Regular
Supreme Direct labor hours 10,000 15,000 Machine hours 10,000 30,000
Number of parts 90,000 160,000