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14. Taylor Draperies makes custom draperies for homes and businesses. The company uses an activity-based...

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Accounting

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14. Taylor Draperies makes custom draperies for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools. Overhead costs: Production overhead Office expense. $240,000 160,000 $400,000 Total.. Distribution of resource consumption: Activity Cost Pools Making Drapes Job Support Other Total Production overhead 35% 45% 20% 100% Office expense 15% 55% 30% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization sustaining costs. The amount of activity for the year is as follows: Activity Cost Pool Annual Activity Making drapes....... 4,000 yards Job support............. 100 jobs Other .Not applicable Project/Portfolio Required: a. Prepare the first-stage allocation of overhead costs to the activity cost pools by filling in the table below: Making Job Drapes Support Other Total Production overhead...... Office expense. Total... b. Compute the activity rates (i.e., cost per unit of activity) for the Making Drapes and Job Support activity cost pools by filling in the table below: Making Job Drapes Support Production overhead...... Office expense Total

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