Overhead applied on product B = $86,280.11 or
86,280.........(depending on roundoff)
Working
|
Calculation of Activity rates |
|
Activity Cost Pool |
Activity driver |
Overhead Cost (A) |
Expected Activity (B) |
Activity rate (A/B) |
|
Activity 1 |
Number of Activity usage |
$Â Â Â Â Â Â Â 89,000.00 |
40700 |
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â
2.19 |
Per Activity usage |
|
Activity 2 |
Number of Activity usage |
$Â Â Â Â Â Â Â 64,000.00 |
35700 |
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â
1.79 |
Per Activity usage |
|
Activity 3 |
Number of Activity usage |
$Â Â Â Â Â 120,000.00 |
10825 |
$Â Â Â Â Â Â Â Â Â Â Â Â
11.09 |
Per Activity usage |
|
Cost assigned to Product B |
|
Activity name |
Activity Rates |
Activity |
ABC Cost |
|
|
(A) |
(B) |
(A x B) |
|
Activity 1 |
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
2.19 |
10900 |
$Â Â Â Â Â Â Â Â 23,835.38 |
|
Activity 2 |
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
1.79 |
16900 |
$Â Â Â Â Â Â Â Â 30,296.92 |
|
Activity 3 |
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
11.09 |
2900 |
$Â Â Â Â Â Â Â Â 32,147.81 |
|
|
|
|
|
|
Total Overheads assigned |
$Â Â Â Â Â Â Â Â 86,280.11 |
