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