Exercise 4-14 (Algo) Allocating overhead cost to jobs using activity-based costing LO P3 Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity Rate $70 per materials requisition $60 per inspection $5 per machine hour During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates. Activity Usage Job A Activity Materials handling Quality inspection Utilities Activity Cost Driver Materials requisitions Inspections Machine hours 6 9 400 Quality inspection Utilities Total Job B 4 5 300 Allocate overhead based on actual activity usage-Job A Activity Activity Usage Materials handling Allocate overhead based on actual activity usage-Job B Activity Activity Usage Materials handling Quality inspection Utilities Total Activity Rate Activity Rate Allocated Cost Allocated Cost

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise 4-14 (Algo) Allocating overhead cost to jobs using activity-based costing LO P3
Pro-Craft Company computed the following activity rates to allocate overhead cost for the year.
Activity
Materials handling
Quality inspection
Utilities
Activity Rate
$70 per materials requisition
$ 60 per inspection
$5 per machine hour
During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates.
Activity Usage
Job A
Activity Cost Driver
Materials requisitions
Inspections
Machine hours
6
9
400
Job B
4
5
300
Allocate overhead based on actual activity usage-Job A
Activity
Activity Usage
Materials handling
Quality inspection
Utilities
Total
Quality inspection
Utilities
Total
Allocate overhead based on actual activity usage-Job B
Activity
Activity Usage
Materials handling
Activity Rate
Activity Rate
Allocated Cost
Allocated Cost
Transcribed Image Text:Exercise 4-14 (Algo) Allocating overhead cost to jobs using activity-based costing LO P3 Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity Materials handling Quality inspection Utilities Activity Rate $70 per materials requisition $ 60 per inspection $5 per machine hour During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates. Activity Usage Job A Activity Cost Driver Materials requisitions Inspections Machine hours 6 9 400 Job B 4 5 300 Allocate overhead based on actual activity usage-Job A Activity Activity Usage Materials handling Quality inspection Utilities Total Quality inspection Utilities Total Allocate overhead based on actual activity usage-Job B Activity Activity Usage Materials handling Activity Rate Activity Rate Allocated Cost Allocated Cost
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