<span>Janet is a financial procurement manager of Unicorn Infra Inc. She is responsible for the efficient and effective management of the company’s funds. Her function includes planning, organizing, directing and controlling of activities with regards to its procurement and use. </span>
<u>The activity rate for the Order Processing activity cost pool is closest to </u>
<u>542</u>
Explanation:
Given that ,
Wages and salaries $540,000
Depreciation $220,000
Rent $240,000
Cost pool for order processing activity
Activity Cost Pools= 30% 25% 45%
= (540,000*30%) +(220,000*25%)+(240,000*45%)
= (162000)+(55000)+(108000)
=325000
Hence ,the Cost pool for order processing activity =325000
We know that the formula for
Activity rate = Cost pool/Total activity
<u></u>
<u>Activity Cost Pool Total Activity Assembly 40,000 labor-hours Order processing 600 orders </u>
<u>
</u>
= 325,000/600
= 542
<u>The activity rate for the Order Processing activity cost pool is closest to </u>
<u>542</u>
Answer:
Estimated manufacturing overhead rate= $1.84 per direct labor dollar
Explanation:
Giving the following information:
Total Direct labor costs= 60,000 + 103,000= $163,000
Total estimated overhead costs are $300,000.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 300,000/163,000
Estimated manufacturing overhead rate= $1.84 per direct labor dollar
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