1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
GalinKa [24]
3 years ago
8

EcoFabrics has budgeted overhead costs of $1,162,350. It has allocated overhead on a plantwide basis to its two products (wool a

nd cotton) using direct labor hours which are estimated to be 553,500 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $442,800 and $719,550 is allocated to the design cost pool. Additional information related to these pools is as follows.
Wool

Cotton

Total

Machine hours 123,000 123,000 246,000
Number of setups 1,230 615 1,845
Calculate the overhead rate using activity based costing. (Round answers to 2 decimal places, e.g. 12.25.)

Overhead rates for activity-based costing
Cutting
$EcoFabrics has budgeted overhead costs of $1,162,3

per machine hour
Design
$EcoFabrics has budgeted overhead costs of $1,162,3

per setup
Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing.

Wool product line

Cotton product line

Overhead Allocated
$EcoFabrics has budgeted overhead costs of $1,162,3

$

Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, e.g. 12.25.)

Overhead rates using the traditional approach
$EcoFabrics has budgeted overhead costs of $1,162,3

per direct labor hour

What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming direct labor hours were incurred evenly between the wool and cotton?
Wool product line

Cotton product line

Overhead Allocated
$EcoFabrics has budgeted overhead costs of $1,162,3

$
Business
1 answer:
Harman [31]3 years ago
6 0

Answer:

Explanation:

Overhead rates based on activity based costing:

Cutting Department; Overhead allocated/Cost Driver

= 442,800/246,000  =$1.80 per Machine Hour

Design Department= Overhead allocated/Cost Driver

=719,550/1,845

=$390 Per Set ups

Overhead allocated:

Wool Product Line =123000*$1.8+1230*$390 =$221400+$479700  =$701,100

Cotton Product Line= 123000*$1.8+615*$390 =$221,400+$239,850  =$461250

Overhead Rate using Traditional Rate

Overhead Rate= Total Overhead/Total Labour Hours

=$1,162,350/553,500  =$2.1

Assuming direct labor hours were incurred evenly between the wool and cotton :

Cost allocation = $276750*2.1=$581,175.

$581,175 will be the cost for Wool and the same for Cotton Product Line.

Hope this helps!

You might be interested in
1-
andre [41]
Number 1 is B. column Number 2 is C. arrow down key Number 3 is C. tab
5 0
2 years ago
Which of the following is an example of an enterprising career?
Alex787 [66]
Real estate Agent,is the right answer
3 0
2 years ago
Most of the property in command economies is owned by who​
ozzi

Answer:

In a command economy an authority such as the government, governmental agency, or central planners decide what to produce, how to produce and to whom goods and services will be allocated.

4 0
3 years ago
An investment advisor has a client base composed of high net worth individuals. In her personal portfolio, the advisor has an in
e-lub [12.9K]

Answer: c. recommend Torex, but she must disclose her investment in Torex to the client.

Explanation:

The investment advisor is allowed to recommend Torex to her clients as she believes that it is financially sound and undervalued which means that there is a chance for her clients to earn a good enough return.

She must however disclose to them that she has an investment in the company so that they can decide on their own if this may have biased her decision towards the company as a viable investment option.

3 0
2 years ago
a. A challenging job at an organization that raises the bar in data security b. An entry-level position in the marketing area wi
Svetllana [295]

Answer:

d. An accounting position in which 10 years' experience and a license as a CPA will allow me to assist your company with payroll, employee benefits,

Explanation:

THE QUESTION IS THAT

Which of the following is the best career objective for a résumé?

Career objective can be regarded as a personal statement that gives definition of the specifics that one wish to attain in his/her profession.

A resume objective can be regarded as optional part that is been written in a resume which states or specify the career goals as well as outlines ones best skills. It should be noted that one of the best career objective for a résumé is An accounting position in which 10 years' experience and a license as a CPA will allow me to assist your company with payroll, employee benefits,

5 0
2 years ago
Other questions:
  • Imagine that the U.S. Congress, recognizing the importance of being well dressed, started giveing preferential tax treatment to
    7·1 answer
  • Individuals can now use the internet to publicly editorialize about the news through:
    7·1 answer
  • An increase in private goods, such as cars, typically leads to an increased need for public services, such as parking spaces. Gr
    13·1 answer
  • ________________________ diagnose, replace, maintain, identify faults with, and repair electrical wiring and computer-based equi
    10·1 answer
  • You are looking for ways to pay for your higher education costs. Which of the following options will require you to pay back any
    10·1 answer
  • S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2021, S&L purchased C
    6·1 answer
  • There are 728 employees at a luncheon. If there are tables set up for eight people, how many tables are there?
    6·2 answers
  • You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How
    8·1 answer
  • You are a real estate owner in Bloomington Indiana and you have rented a house to students. You expect to make 6% per year on th
    13·1 answer
  • Features of wealth definition <br><br> 10
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!