The controller for Washington Co. established the following overhead cost pools and cost drivers: ...
70.2K
Verified Solution
Link Copied!
Question
Accounting
The controller for Washington Co. established the following overhead cost pools and cost drivers:
| Estimated | ||||
| Budgeted | Cost Driver | |||
| Overhead Cost Pool | Overhead | Cost Driver | Level |
|
| Quality controls | $60,000 | # of inspections | 2,000 | inspections |
| Machine setups | $100,000 | # of setups | 20,000 | setups |
| Other overhead costs | $90,000 | # of machine hrs | 2,500 | machine hrs |
| Total overhead costs | $250,000 | |||
| A recent order for sailboats used: | ||||
| Quality inspections | 400 | inspections | ||
| Machine setups | 2,500 | setups | ||
| Machine hours (MHs) | 300 | machine hours
| ||
a. What is the overhead rate per machine hour if the number of machine hours (MHs)
is used as a single cost driver under traditional costing system?
b. Utilizing traditional costing, how much overhead is assigned to the order
based on machine hours as a single cost driver?
c. Utilizing ABC, how much total overhead is assigned to the order?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.