Our company sold a batch of goods by way of letter of credit. Due to problems during the loading, most of the goods were loaded
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Answer:
- A1 = $12 A2 = $9.20 A3 = $1.50
- Total Overhead for Standart Product $267.16
- Total Overhead for Deluxe Product $163.48
Explanation:
First we will Calculate the rates:
This is done by adding the two product activity use to get the total cost driver.
Then we divide by the activity cost to get the rate:
Next we check the overhead per unit:
units/ activity use x rate = overhead for activity
<em>Standart Product Manufacturing Overhead</em>
36,375units /2,500 Use Activity 1 x $12 = $174.60
36,375units /4,500 Use Activity 2 x $9.20 = $74.37
36,375units /3,000 Use Activity 3 x $1.50= $18.19
Total Overhead for Standart Product $267.16
<em>Deluxe Product Manufacturing Overhead</em>
62,240units /5,250 Use Activity 1 x $12 = $83,14
62,240units /5,500 Use Activity 2 x $9.20 = $60,85
62,240units /2,800 Use Activity 3 x $1.50= $19,49
Total Overhead for Deluxe Product $163.48
The gradual decrease in the value of natural resource is called depletion. The deplection expense is calculated on the cost net off salvage value.
Therefore, Depletion expense per ton of ore would be $0.64 per ton of ore.