FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Ariana produces custom widgets for its customers. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from
its activity-based costing system.
Activity Cost Pool Total Cost
Assembling...
Job Support..
Customer support......
Other.........
$108708
$32142
$5045
$104630
Total Activity
16608 machine hours
1871 jobs
353 clients
Not applicable
The "Other" activity cost pool consists of costs of idle capacity & organization-sustaining costs. One particular customer, Victor Inc., requested 36 jobs during the year for a total of
116 units, requiring a total of 196 machine hours. Each unit requires $0.68 in direct materials and $1.72 in direct labor. The customer was charged $2275 for these jobs.
Using ABC, compute the activity rate for Customer support. Round ONLY your final answer to 2 decimal places.
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Transcribed Image Text:Ariana produces custom widgets for its customers. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Activity Cost Pool Total Cost Assembling... Job Support.. Customer support...... Other......... $108708 $32142 $5045 $104630 Total Activity 16608 machine hours 1871 jobs 353 clients Not applicable The "Other" activity cost pool consists of costs of idle capacity & organization-sustaining costs. One particular customer, Victor Inc., requested 36 jobs during the year for a total of 116 units, requiring a total of 196 machine hours. Each unit requires $0.68 in direct materials and $1.72 in direct labor. The customer was charged $2275 for these jobs. Using ABC, compute the activity rate for Customer support. Round ONLY your final answer to 2 decimal places.
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