The managing director of the company would like Information concerning the cost of a recently completed order for heavy-duty trallerexles. The order required 150 direct labor-hours, 17 hours of product testing, and 6 sales calls.Required:What is the total overhead cost assigned to the order for heavy-duty trailer axles?Activity Cost PoolABC CostOrder sizeCustomer ordersProduct testingSellingTotal overhead cost Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cuttingedges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internaldecision-making purposes. The company has four activity cost pools as listed below:Activity cost PoolOrder sizeCustomer orderaProduct testingSellingActivity MeasureNumber of direct labor-hoursNumber of customer ordersNumber of testing hoursNumber of salea callaActivity Rate17.50 per direct labor-hour355.00 per customer order82.00 per testing hour$1,480.00 per sales callThe managing director of the company would like Information concerning the cost of a recently completed order for heavy-duty traileraxles. The order required 150 direct labor-hours, 17 hours of product testing, and 6 sales calls.Required:What is the total overhead cost assigned to the order for heavy-duty traller axles?

Name: The managing director of the company would like Information concernin
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Description: The managing director of the company would like Information concerning the cost of a recently completed order for heavy-duty trallerexles. The order required 150 direct labor-hours, 17 hours of product testing, and 6 sales calls.Required:What is the

Under activity based costing, all overhead costs are assigned to products on the basis of activities…

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Durban Metal Products, Ltd., 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 decislon-making purposes. The company has four activity cost pools as listed below. Activity Cost Pool Order size Customer ordera Product testing Selling Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls Activity Rate 17.50 per direct labor-hour $355.00 per customer order 82.00 per testing hour $1,480.00 per sales call 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 150 direct labor-hours, 17 hours of product testing, and 6 sales calls. Required: What is the tetal oyerhead cost assigned to the order for heavy-duty trailer axles?

Durban Metal Products, Ltd., 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 decislon-making purposes. The company has four activity cost pools as listed below. Activity Cost Pool Order size Customer ordera Product testing Selling Activity Measure Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls Activity Rate 17.50 per direct labor-hour $355.00 per customer order 82.00 per testing hour $1,480.00 per sales call 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 150 direct labor-hours, 17 hours of product testing, and 6 sales calls. Required: What is the tetal oyerhead cost assigned to the order for heavy-duty trailer axles?

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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