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Estimated Еxpected Activity Activity Cost Pool Activity Measure Machine related machine hours Machine setups number of setups Purchase orders number of orders General factory direct labor hours Totals Overhead Cost $1,500,000 $300,000 50,000 MHs 750 setups $192,500 3,500 orders $504,000 $2,496,500 36,000 DLHS Activity Measure machine hours number of setups Product Delta Product Sigma 28,000 22,000 350 400 number of orders 1,900 1,600 direct labor hours 20,000 16,000

Estimated Еxpected Activity Activity Cost Pool Activity Measure Machine related machine hours Machine setups number of setups Purchase orders number of orders General factory direct labor hours Totals Overhead Cost $1,500,000 $300,000 50,000 MHs 750 setups $192,500 3,500 orders $504,000 $2,496,500 36,000 DLHS Activity Measure machine hours number of setups Product Delta Product Sigma 28,000 22,000 350 400 number of orders 1,900 1,600 direct labor hours 20,000 16,000

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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  1. What is the activity rate based on machine hours?
  2. Activity rate based on the number of machine setups?
  3. Activity rate based on the number of purchase orders?
has the following estimates for 2019: Estimated Expected Activity 50,000 MHs Activity Cost Pool Activity Measure Machine related machine hours Machine setups number of setups Purchase orders number of orders General factory direct labor hours Overhead Cost $1,500,000 $300,000 $192,500 $504,000 $2,496,500 750 setups 3,500 orders 36,000 DLHS Totals Activity Measure machine hours Product Delta Product Sigma 28,000 350 22,000 400 number of setups number of orders 1,900 1,600 direct labor hours. 20,000 16,000
Transcribed Image Text:has the following estimates for 2019: Estimated Expected Activity 50,000 MHs Activity Cost Pool Activity Measure Machine related machine hours Machine setups number of setups Purchase orders number of orders General factory direct labor hours Overhead Cost $1,500,000 $300,000 $192,500 $504,000 $2,496,500 750 setups 3,500 orders 36,000 DLHS Totals Activity Measure machine hours Product Delta Product Sigma 28,000 350 22,000 400 number of setups number of orders 1,900 1,600 direct labor hours. 20,000 16,000
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