Calculate the overhead rate based on the traditional overhead allocation ethod using direct labour hours as the base. NOTE: Enter only the number of dollars, do not e e dollar, "$", symbol. Therefore if your answer is "$10", enter only "10". estion 35 iestion 4.2 ulate the total overhead applied to order no. 159 using the traditional overhead rate calcul estion 4.1 above. NOTE: Enter only the number of dollars, do not enter the dollar, "$" , sy efore if your answer is "$10", enter only "10".
Calculate the overhead rate based on the traditional overhead allocation ethod using direct labour hours as the base. NOTE: Enter only the number of dollars, do not e e dollar, "$", symbol. Therefore if your answer is "$10", enter only "10". estion 35 iestion 4.2 ulate the total overhead applied to order no. 159 using the traditional overhead rate calcul estion 4.1 above. NOTE: Enter only the number of dollars, do not enter the dollar, "$" , sy efore if your answer is "$10", enter only "10".
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![**Question 4.1:** Calculate the overhead rate based on the traditional overhead allocation method using direct labour hours as the base. **NOTE:** Enter only the number of dollars, do not enter the dollar, "$", symbol. Therefore if your answer is "$10", enter only "10".
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**Question 35**
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**Question 4.2**
Calculate the total overhead applied to order no. 159 using the traditional overhead rate calculated in question 4.1 above. **NOTE:** Enter only the number of dollars, do not enter the dollar, "$", symbol. Therefore if your answer is "$10", enter only "10".
[Box for answer]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad9f85fe-0b70-4ba7-9aaa-2221d86301ac%2F609b51af-1796-4e64-bc10-498cd8e0f4cf%2F2942xa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Question 4.1:** Calculate the overhead rate based on the traditional overhead allocation method using direct labour hours as the base. **NOTE:** Enter only the number of dollars, do not enter the dollar, "$", symbol. Therefore if your answer is "$10", enter only "10".
[Box for answer]
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**Question 35**
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**Question 4.2**
Calculate the total overhead applied to order no. 159 using the traditional overhead rate calculated in question 4.1 above. **NOTE:** Enter only the number of dollars, do not enter the dollar, "$", symbol. Therefore if your answer is "$10", enter only "10".
[Box for answer]

Transcribed Image Text:Clear Solutions manufactures and installs standard and custom-designed shop windows. Last year, the company incurred $2,400,000 in overhead costs when a total of 30,000 direct labor hours were incurred. After implementing activity-based costing (ABC), the company's accountant identified the following related information:
### Activity-Based Costing Table
| Activity | Allocation Base | Proportion of Overhead Cost |
|----------------------------|-------------------------------|-----------------------------|
| Purchasing | Number of purchase orders | 20% |
| Material delivery and handling | Number of deliveries | 10% |
| Design | Hours of design time | 20% |
| Installation | Hours of installation time | 50% |
### Number of Activities for Standard and Custom-Made Windows
| | Standard | Custom |
|------------------------------|-----------|---------|
| Number of purchase orders | 1,000 | 1,400 |
| Number of deliveries | 200 | 400 |
| Hours of design time | 200 | 800 |
| Hours of installation time | 700 | 600 |
### Order No. 159 Details
During the past year, Clear Solutions accepted order no. 159 for one custom window installation that would require the following:
- Direct labor hours: 20
- Number of purchase orders: 3
- Number of deliveries: 2
- Hours of design time: 5
- Hours of installation time: 4
This implementation of activity-based costing allows Clear Solutions to allocate costs more accurately based on the specific activities involved in their window manufacturing and installation processes.
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