Nasser Company has analyzed its production process and identified two primary activities. These activities, their allocation bases, and estimated costs are listed below. (Click on the icon to view the estimated costs data.) The company manufactures two products: Regular and Super. The products use the following resources in March: (Click on the icon to view the actual data for March.) Read the requirements. Requirement 1. Compute the predetermined overhead allocation rates using activity-based costing Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Round your answers to the nearest cent Predetermined OH allocation rate Purchasing Material handling Requirements 2 and 3. Determine the amount of overhead allocated to Regular and Super in March. Begin by selecting the formula to allocate overhead costs. Compute the amount of overhead allocated to Regular. Regular Purchasing Materials Handling Allocated manufacturing overhead costs Now compute the amount of overhead allocated to Super. Super Purchasing Materials Handling Allocated manufacturing overhead costs Allocated mig. overhead costs Data table Activity Purchasing Materials handling Allocation Base Number of purchase orders Number of parts Data table Number of purchase orders Number of parts Print Estimated Activity 210 purchase orders 14,000 parts Regular 8 purchase orders 700 parts Done $ $ Estimated Costs Super 10 purchase orders 1,100 parts 13,650 9,520 X X
Nasser Company has analyzed its production process and identified two primary activities. These activities, their allocation bases, and estimated costs are listed below. (Click on the icon to view the estimated costs data.) The company manufactures two products: Regular and Super. The products use the following resources in March: (Click on the icon to view the actual data for March.) Read the requirements. Requirement 1. Compute the predetermined overhead allocation rates using activity-based costing Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Round your answers to the nearest cent Predetermined OH allocation rate Purchasing Material handling Requirements 2 and 3. Determine the amount of overhead allocated to Regular and Super in March. Begin by selecting the formula to allocate overhead costs. Compute the amount of overhead allocated to Regular. Regular Purchasing Materials Handling Allocated manufacturing overhead costs Now compute the amount of overhead allocated to Super. Super Purchasing Materials Handling Allocated manufacturing overhead costs Allocated mig. overhead costs Data table Activity Purchasing Materials handling Allocation Base Number of purchase orders Number of parts Data table Number of purchase orders Number of parts Print Estimated Activity 210 purchase orders 14,000 parts Regular 8 purchase orders 700 parts Done $ $ Estimated Costs Super 10 purchase orders 1,100 parts 13,650 9,520 X X
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...
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