A manufacturer uses activity-based costing to assign overhead costs to products. Budgeted cost information for selected activities for next year follows. Activity Expected Cost Purchasing Cleaning factory Providing utilities $100,000 29,500 55,550 Cost Driver Purchase orders Square feet Square feet Expected Usage of Cost Driver 4,000 purchase orders 4,500 square feet 4,500 square feet Compute activity rates for each of the cost pools. (Round your answers to 2 decimal places.) Activity cost pool Expected Costs Expected Amount of Cost Driver Activity Overhead Rate Purchasing Factory 4,000 4,500 per purchase order per square foot
A manufacturer uses activity-based costing to assign overhead costs to products. Budgeted cost information for selected activities for next year follows. Activity Expected Cost Purchasing Cleaning factory Providing utilities $100,000 29,500 55,550 Cost Driver Purchase orders Square feet Square feet Expected Usage of Cost Driver 4,000 purchase orders 4,500 square feet 4,500 square feet Compute activity rates for each of the cost pools. (Round your answers to 2 decimal places.) Activity cost pool Expected Costs Expected Amount of Cost Driver Activity Overhead Rate Purchasing Factory 4,000 4,500 per purchase order per square foot
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer must be in table format or i will give down vote
Transcribed Image Text:A manufacturer uses activity-based costing to assign overhead costs to products. Budgeted cost information for selected activities for
next year follows.
Activity
Expected Cost
Purchasing
Cleaning factory
Providing utilities
$100,000
29,500
55,550
Cost Driver
Purchase orders
Square feet
Square feet
Expected Usage of Cost Driver
4,000 purchase orders
4,500 square feet
4,500 square feet
Compute activity rates for each of the cost pools. (Round your answers to 2 decimal places.)
Activity cost pool
Expected Costs
Expected
Amount of Cost
Driver
Activity Overhead Rate
Purchasing
Factory
4,000
4,500
per purchase order
per square foot
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