A company adopts activity-based costing system.ActivityMaterial handlingQuality inspectionMachine checkupsRequired:Req 1Complete this question by entering your answers in the tabs below.Cost DriverNumber of movesNumber of inspectionsmachine hoursReq 2 and 3Material HandlingQuality inspectionMachine checkupCalculate the activity rates.Note: Round your answers to 2 decimal places.Activity RateEstimated MOHfor activity$ 2,400.00$ 8,636.00$ 16,629.00per Material Moveper Inspectionper Machine HourProduct A41 moves570 inspections3,020 machine hours.Product B55 moves700 inspections4,210 machine hours. 2. Calculate the amount of overhead to be assigned to Product A.Note: Round your intermediate calculations to 2 decimal places.2. Standard floor mat lineTotal OverheadAssigned

In the domain of accounting the concept of activity bases costing is very important. In an activity…

Req 1 Req 2 and 3 Calculate the activity rates. Note: Round your answers to 2 decimal places. Material Handling Quality inspection Machine checkup Activity Rate per Material Move per Inspection per Machine Hour

Req 1 Req 2 and 3 Calculate the activity rates. Note: Round your answers to 2 decimal places. Material Handling Quality inspection Machine checkup Activity Rate per Material Move per Inspection per Machine Hour

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company adopts activity-based costing system.
Activity
Material handling
Quality inspection
Machine checkups
Required:
Req 1
Complete this question by entering your answers in the tabs below.
Cost Driver
Number of moves
Number of inspections
machine hours
Req 2 and 3
Material Handling
Quality inspection
Machine checkup
Calculate the activity rates.
Note: Round your answers to 2 decimal places.
Activity Rate
Estimated MOH
for activity
$ 2,400.00
$ 8,636.00
$ 16,629.00
per Material Move
per Inspection
per Machine Hour
Product A
41 moves
570 inspections
3,020 machine hours.
Product B
55 moves
700 inspections
4,210 machine hours.

2. Calculate the amount of overhead to be assigned to Product A.
Note: Round your intermediate calculations to 2 decimal places.
2. Standard floor mat line
Total Overhead
Assigned

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