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Durban Metal Products, Limit cutting edges of bulldozer bill nternal decision-making pur Cost Pool

Durban Metal Products, Limit cutting edges of bulldozer bill nternal decision-making pur Cost Pool

FINANCIAL ACCOUNTING
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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Any help as soon as possible would be so appreciated, thanks
Durban Metal Products, Limited, of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Order size Customer orders. Product testing Selling The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 120 direct labor-hours, 11 hours of product testing, and 3 sales calls. Activity Cost Pool Order size Required: What is the total overhead cost assigned to the order for heavy-duty trailer axles? Customer orders Product testing Selling Total overhead cost F2 W #3 80 F3 Activity Measure. Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls. E ABC Cost $ $ 4 0 F4 R % 5 F5 < Prev T Activity Rate $17.90 per direct labor-hour $364.00 per customer order. $ 72.00 per testing hour $ 1,485.00 per sales call 6 S D F G 4 of 4 MacBook Air F6 Y & 7 H K Next > U 8 DII F8 F9 B
Transcribed Image Text:Durban Metal Products, Limited, of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Order size Customer orders. Product testing Selling The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 120 direct labor-hours, 11 hours of product testing, and 3 sales calls. Activity Cost Pool Order size Required: What is the total overhead cost assigned to the order for heavy-duty trailer axles? Customer orders Product testing Selling Total overhead cost F2 W #3 80 F3 Activity Measure. Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls. E ABC Cost $ $ 4 0 F4 R % 5 F5 < Prev T Activity Rate $17.90 per direct labor-hour $364.00 per customer order. $ 72.00 per testing hour $ 1,485.00 per sales call 6 S D F G 4 of 4 MacBook Air F6 Y & 7 H K Next > U 8 DII F8 F9 B
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