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Sunday, February 13, 2011

Accounting Activity Cost Pool

Solution is available here for U$10

Requirement 2:
At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools:


 
  Activity Cost Pool
  Activity Measure
Estimated Overhead Cost
Expected Activity
  Labor related
  Direct labor-hours

$
270,000

40,000
 DLHs
  Purchase orders
  Number of orders

$
61,500

1,500
 orders
  Parts management
  Number of part types

$
115,000

400
 part types
  Board etching
  Number of boards

$
380,000

2,000
 boards
  General factory
  Machine-hours

$
416,000

80,000
 MHs

   
Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
 
  Activity Cost Pool
Activity Rate
  Labor related
$
 per DLH
  Purchase orders
$
 per order
  Parts management
$
 per part type
  Board etching
$
 per board
  General factory
$
 per MH

Worksheet
Learning Objective: 03-2

Difficulty: Basic
Learning Objective: 03-5


 
 
Requirement 3:
During the year, actual activity was recorded as follows:

 
  Activity Cost Pool
Actual Activity
  Labor related
41,000
 DLHs
  Purchase orders
1,300
 orders
  Parts management
420
 part types
  Board etching
2,150
 boards
  General factory
82,000
 MHs

   
Determine the amount of manufacturing overhead cost applied to production for the year. (Omit the "$" sign in your response.)
 
  Activity Cost Pool
Applied
Overhead
  Labor related
$    
  Purchase orders
   
  Parts management
   
  Board etching
   
  General factory
   


  Total
$    




Worksheet
Learning Objective: 03-2

Difficulty: Basic
Learning Objective: 03-5


 
 4.
value:
1 points

 
Requirement 4:
Determine the amount of underapplied or overapplied overhead cost for the year (Input the amount as positive value. Omit the "$" sign in your response):

 
  



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