b. 1. The KLM Company has established the following overhead cost pools and cost drivers. C. Overhead Cost Pool Machine Material Handling Quality control Packaging Facility Total Required: a. Packaging Facility S $ $ S S $ Estimated Overhead Cost 200,000 150,000 70,000 50,000 180,000 650,000 dministration 10,000 tons 20 inspections 100 units 800 DLH Cost Driver Machine Hours Weight of raw material Number of inspections Number of Units Direct Labor Hours .NO:... Estimated Level for Cost Driver 1,000 MH 50,000 tons 2,000 inspections An order for 500 units of product-ordered by Alfa Co.- has the following production requirements. Machine 80 MH Material Handling Quality Control 20,000 units 30,000 DLH 16.01.2024 Pool Rates Compute the total overhead cost that should be assigned to the order of Alfa Co., using the five cost pools an drivers. What is the overhead cost per unit ordered by Alfa Co? Suppose KLM Company were to use a single predetermined overhead rate based on machine hours. Comput rate per hour and the total overhead assigned to the order above.
b. 1. The KLM Company has established the following overhead cost pools and cost drivers. C. Overhead Cost Pool Machine Material Handling Quality control Packaging Facility Total Required: a. Packaging Facility S $ $ S S $ Estimated Overhead Cost 200,000 150,000 70,000 50,000 180,000 650,000 dministration 10,000 tons 20 inspections 100 units 800 DLH Cost Driver Machine Hours Weight of raw material Number of inspections Number of Units Direct Labor Hours .NO:... Estimated Level for Cost Driver 1,000 MH 50,000 tons 2,000 inspections An order for 500 units of product-ordered by Alfa Co.- has the following production requirements. Machine 80 MH Material Handling Quality Control 20,000 units 30,000 DLH 16.01.2024 Pool Rates Compute the total overhead cost that should be assigned to the order of Alfa Co., using the five cost pools an drivers. What is the overhead cost per unit ordered by Alfa Co? Suppose KLM Company were to use a single predetermined overhead rate based on machine hours. Comput rate per hour and the total overhead assigned to the order above.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 1P: The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent...
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Question
![1. The KLM Company has established the following overhead cost pools and cost drivers.
Overhead Cost Pool
Machine
Material Handling
Quality control
Packaging
Facility
Total
Material Handling
Quality Control
Packaging
Facility
Required:
a.
S
$
$
S
S
S
Estimated
Overhead Cost
200,000
150,000
70,000
180,000
dministration
Number of
inspections
50,000 Number of Units
650,000
Cost Driver
10,000 tons
20 inspections
100 units
800 DLH
Machine Hours
Weight of raw
material
Direct Labor
Hours
.NO:.
Estimated Level
for Cost Driver
1,000 MH
50,000 tons
2,000 inspections
20,000 units
An order for 500 units of product -ordered by Alfa Co.- has the following production requirements.
Machine
80 MH
30,000 DLH
16.01.2024
Pool Rates
Compute the total overhead cost that should be assigned to the order of Alfa Co., using the five cost pools and
drivers.
b. What is the overhead cost per unit ordered by Alfa Co?
c. Suppose KLM Company were to use a single predetermined overhead rate based on machine hours. Compute the
rate per hour and the total overhead assigned to the order above.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0fd6f711-561e-4319-b041-c198c3ca30a4%2F4afaeac4-a6c5-495f-9761-ec5b322e9127%2Fvpb6vog_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. The KLM Company has established the following overhead cost pools and cost drivers.
Overhead Cost Pool
Machine
Material Handling
Quality control
Packaging
Facility
Total
Material Handling
Quality Control
Packaging
Facility
Required:
a.
S
$
$
S
S
S
Estimated
Overhead Cost
200,000
150,000
70,000
180,000
dministration
Number of
inspections
50,000 Number of Units
650,000
Cost Driver
10,000 tons
20 inspections
100 units
800 DLH
Machine Hours
Weight of raw
material
Direct Labor
Hours
.NO:.
Estimated Level
for Cost Driver
1,000 MH
50,000 tons
2,000 inspections
20,000 units
An order for 500 units of product -ordered by Alfa Co.- has the following production requirements.
Machine
80 MH
30,000 DLH
16.01.2024
Pool Rates
Compute the total overhead cost that should be assigned to the order of Alfa Co., using the five cost pools and
drivers.
b. What is the overhead cost per unit ordered by Alfa Co?
c. Suppose KLM Company were to use a single predetermined overhead rate based on machine hours. Compute the
rate per hour and the total overhead assigned to the order above.
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