1. Calculate the activity rate for each activity pool. 2. Determine the amount of overhead assigned to Fellar's products if they have the following activity demands: Product A 640 42,500 3. Using activity proportions, determine the amount of overhead assigned to Fellar's products. Number of material moves Number of machine hours Complete this question by entering your answers in the tabs below. Required 1 Required 2 Product B 210 39,500 Required 3 Calculate the activity rate for each activity pool. your answers to 2 decimal places.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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E4-6 (Algo) Calculating Activity Rates, Assigning Costs [LO 4-3, 4-4]
Fellar Corporation has identified the following information:
Activity pools
Materials handling
Machine maintenance
Cost drivers
Number of material moves.
Number of machine hours
Required:
1. Calculate the activity rate for each activity pool.
2. Determine the amount of overhead assigned to Fellar's products if they have the following activity demands:
Number of material moves.
Number of machine hours.
$ 36,550
$ 28,700
Product A
640
42,500
3. Using activity proportions, determine the amount of overhead assigned to Fellar's products.
Required 1 Required 2 Required 3
850
82,000
Complete this question by entering your answers in the tabs below.
Material Handling
Calculate the activity rate for each activity pool.
Note: Round your answers to 2 decimal places.
Product B
210
39,500
Activity Rate
Der Material Move
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