Data concerning three of Kilmon Corporation’s activity cost pools appear below: Activity Cost PoolsEstimated Overhead CostExpected ActivityAssembling products$ 86,0704,530assembly hoursDesigning products$ 605,4123,012product design hoursSetting up batches$ 48,140830batch set-ups Required:Compute the activity rates for each of the three cost pools. Data concerning three of Kilmon Corporation's activity cost pools appear below:Estimated OverheadActivity Cost PoolsAssembling productsDesigning productsSetting up batchesActivitiesAssembling productsDesigning productsSetting up batchesCost$ 86,070$ 605,412$ 48,140Required:Compute the activity rates for each of the three cost pools. (Round your answers to 2 decimal places.)Activity RateExpected Activity4,530 assembly hours3,012 product design hours830 batch set-ups

Answered: Data concerning three of Kilmon…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Data concerning three of Kilmon Corporation’s activity cost pools appear below:

Activity Cost Pools	Estimated Overhead Cost	Expected Activity
Assembling products	$ 86,070	4,530	assembly hours
Designing products	$ 605,412	3,012	product design hours
Setting up batches	$ 48,140	830	batch set-ups

Required:

Compute the activity rates for each of the three cost pools.

Data concerning three of Kilmon Corporation's activity cost pools appear below:
Estimated Overhead
Activity Cost Pools
Assembling products
Designing products
Setting up batches
Activities
Assembling products
Designing products
Setting up batches
Cost
$ 86,070
$ 605,412
$ 48,140
Required:
Compute the activity rates for each of the three cost pools. (Round your answers to 2 decimal places.)
Activity Rate
Expected Activity
4,530 assembly hours
3,012 product design hours
830 batch set-ups

Expert Solution

Step 1

Activity Based Costing :— Activity Based Costing is a Powerful Tools for Measuring Performance. It is used to Identify, Describe, Assign Cost to and Report An agency Operation.

ABC Costing is a method for developing cost estimates in which the project is subdivided into descrete, Quantifiable Activities or a Work Unit.

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