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stealth61 [152]
3 years ago
5

Question 2: Allocating costs using ABC You have an ABC system with three pools number of cost driver units total cost in the poo

l product A product B total pool 1 $20,000 4,000 DL$ 6,000 DL$ 10,000 DL$ pool 2 $15,000 20 setups 30 setups 50 setups pool 3 $10,000 50 hours 150 hours 200 hours Compute the activity rates and the allocated costs for products A and B. activity rate allocated costs for product A allocated costs for product B pool 1 $ per DL$ $ $ pool 2 $ per setup $ $ pool 3 $ per hour $ $ total allocated costs for each product $ $
Business
1 answer:
allochka39001 [22]3 years ago
8 0

Answer:

Results are below.

Explanation:

<u>To calculate the activities rates, we need to use the following formula on each pool:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Pool 1= 20,000/10,000= $2 per direct labor dollar

Pool 2= 15,000/50= $300 per setup

Pool 3= 10,000/200= $50 per hour

<u>Now, we can allocate costs to each product:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product A:

Pool 1= 2*4,000= 8,000

Pool 2= 300*20= 6,000

Pool 3= 50 *50= 2,500

Total allocated costs= $16,500

Product B:

Pool 1= 2*6,000= 12,000

Pool 2= 300*30= 9,000

Pool 3= 50 *150= 7,500

Total allocated costs= $28,500

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Answer:

The answer is cost accounting system.

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3 years ago
A real estate professional leased a building for 10 years at an annual rent of $48,000. She will receive a commission of 7.5% fo
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Her gross income from this commission over the life of the lease is $28,560.

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Commission=5×3600

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Commission for the final two years

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Learn more about gross income commission here:brainly.com/question/24825618

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3 years ago
Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $50,000 and matures in 20 years. T
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Answer

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The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
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