Bramble Industries has three activity cost pools and two products. It estimates production 2.000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Bramble accumulated the following data relative to those activity cost pools and cost drivers. Activity Cost Pools Cost Drivers Machine setup Setups Machining Packing Annual Overhead Data (a) Using the above data, do the following Machine hours Orders Activity Cost Estimated Overhead $23.400 Estimated 97,280 30.680 Estimated Use of Cost Drivers per Product Estimated Use of Cost Drivers per Activity 39 5,120 520 Estimated Use of Cost Product BC113 23 Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. 1,060 200 Product AD 908 16 4,060 320 Activity-Based
Bramble Industries has three activity cost pools and two products. It estimates production 2.000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Bramble accumulated the following data relative to those activity cost pools and cost drivers. Activity Cost Pools Cost Drivers Machine setup Setups Machining Packing Annual Overhead Data (a) Using the above data, do the following Machine hours Orders Activity Cost Estimated Overhead $23.400 Estimated 97,280 30.680 Estimated Use of Cost Drivers per Product Estimated Use of Cost Drivers per Activity 39 5,120 520 Estimated Use of Cost Product BC113 23 Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. 1,060 200 Product AD 908 16 4,060 320 Activity-Based
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Bramble Industries has three activity cost pools and two products. It estimates production 2.000 units of Product BC113 and 1,000 of
Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Bramble accumulated the following data
relative to those activity cost pools and c
d cost drivers.
Activity Cost Pools
Machine setup
Machining
Packing
(a)
Using the above data, do the following:
Activity
Cost
Pools
Annual Overhead Data
Machine
setup
Machining
Cost Drivers
Setups
Packing
Machine hours
Orders
Estimated
Overhead
$23,400
Estimated
Overhead
97,280
30.680
Estimated Use of
Cost Drivers per Product
Estimated Use of Cost
Drivers per Activity
Prepare a schedule showing the computations of the activity-based overhead rates per cost driver.
39
5,120
520
Estimated Use of Cost
Drivers per Activity
setups
machine
hours
Product
BC113
orders
1,060
200
23
$
$
Product
AD908
16
4,060
320
Activity-Based
Overhead Rates
per
setup
per
machine
hr.
per
order
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