Customs makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with $26,000 in overhead. Poly is estimated to have 750,000 setups and 140,000 inspections, while silk has 250,000 setups and 60,000 inspections. Complete the table below to determine how much overhead is applied to each product?   PLEASE NOTE: All cost pool activity rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). The cost pool activity rates will NOT include a label. The dollar amount is rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Activity Activity Rate for Poly  Poly Applied OH Activity Rate for Silk Silk Applied OH Setup         Inspection         Total

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Customs makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with $26,000 in overhead. Poly is estimated to have 750,000 setups and 140,000 inspections, while silk has 250,000 setups and 60,000 inspections. Complete the table below to determine how much overhead is applied to each product?

 

PLEASE NOTE: All cost pool activity rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). The cost pool activity rates will NOT include a label. The dollar amount is rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).

Activity Activity Rate for Poly  Poly Applied OH Activity Rate for Silk Silk Applied OH
Setup        
Inspection        
Total        

 

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