Acct344 Devry Cost Accounting: (TCO 8) Musical Instruments Company manufactures two products

Acct344 Devry Cost Accounting

5. (TCO 8) Musical Instruments Company manufactures two products (trumpets and trombones). Overhead costs ($175,000) have been divided into three cost pools that use the following activity drivers.
Product Number of setups Machine hours Packing orders
Trumpets 50 1,500 150
Trombones 50 4,500 250
Cost per pool 60,000 90,000 25,000

Required (show all calculations)
a. What is the allocation rate for trumpets per setup using activity-based costing?
b. What is the allocation rate for trumpets per machine hours using activity-based costing?
c. What is the allocation rate for trumpets per packing order using activity-based costing?
(Points : 30)

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