Overhead estimates for the year are broken down as follows: Materials handling Cost Driver Estimated overhead Estimated number of costs deliver units 50,000 kilos Cost. Materials Handling Production setups Quality inspections Machine depreciation Number of kilos Number of runs Inspection hours P400,000 P900,000 P300,000 P400,000 300 runs 4,000 hours 10,000 hours Machine hour Total estimated head Determine the following: 5. Predetermined annual overhead rates for Activity-based costing (Materials Handling) 6. Predetermined annual overhead rates for Activity-based costing (Production setups) 7. Predetermined annual overhead rates for Activity-based costing (Quality inspections)
Overhead estimates for the year are broken down as follows: Materials handling Cost Driver Estimated overhead Estimated number of costs deliver units 50,000 kilos Cost. Materials Handling Production setups Quality inspections Machine depreciation Number of kilos Number of runs Inspection hours P400,000 P900,000 P300,000 P400,000 300 runs 4,000 hours 10,000 hours Machine hour Total estimated head Determine the following: 5. Predetermined annual overhead rates for Activity-based costing (Materials Handling) 6. Predetermined annual overhead rates for Activity-based costing (Production setups) 7. Predetermined annual overhead rates for Activity-based costing (Quality inspections)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 4BE: Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000...
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