None Mc-Cordy Company provided information on the following three overhead activities:ActivityVariable rateMaintenancePowerSetting upDriverMachine hoursFixed costR75 000Machine hoursSetupsR20 000R1.50R2.05R1 500.00Mc-Cordy has found that the following driver levels are associated with two different levels ofproduction:DriverMachine hoursSetups30 000 units50.00070 000 units95 0002565Required:2.1Prepare an activity-based flexible budget.(15)ers

Answered: Image /qna-images/answer/f6ee04be-584f-434b-bbdd-dc93c8825b5f.jpg

Answered: Mc-Cordy Company provided information…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 8EA: Rex Industries has identified three different activities as cost drivers: machine setups, machine...

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Overhead costs are assigned to each product based on __________________. A. the proportion of that products use of the cost driver B. a predetermined overhead rate for a single cost driver C. price of the product D. machine hours per product
s
1. With ABC, overhead costs are assigned to each product based on ________. Group of answer choices machine hours per product price of the product a predetermined overhead rate for a single cost driver the proportion of that product’s use of the cost driver
A predetermined overhead rate is calculated by dividing actual overhead cost by the actual amount of a cost driver used in the process. Select one: O True 40 False
! Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Total Cost of Pool Number of machine hours Number of design hours. Number of batches. Cost Driver $416,700 Number of machine hours 93,100 Number of design hours 73,338 Number of batches Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Estimated Cost Driver 92,600 9,500 510 Product A Product B Product C 36,000 46,000 10,600 3,800 2,100 3,600 285 50 175
Please answer the following multiple-choice questions
Please help me with part a and part b thanku
Which of the following is the correct formula to compute the predetermined overhead rate? Multiple Choice Predetermined overhead rate = Estimated total units in the allocation base ÷ Estimated total manufacturing overhead costs Predetermined overhead rate = Estimated total manufacturing overhead costs ÷ Estimated total units in the allocation base Predetermined overhead rate = Actual total manufacturing overhead costs ÷ Estimated total units in the allocation base Predetermined overhead rate = Estimated total manufacturing overhead costs ÷ Actual total units in the allocation base.
Which is the correct formula for computing the overhead rate? A. estimated use of the cost driver for production/estimated overhead for the activity B. estimated overhead for the product/estimated use of the cost driver for the activity C. estimated use of the cost driver for production/estimated overhead for the activity D. estimated overhead for the activity/estimated use of the cost driver for the activity
Customs has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are: What is the predetermined overhead rate for each activity?
Frenchys has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are: What is the predetermined overhead rate for each activity?
The standard direct labor hours allowed is computed as a. Unit Labor Standard Actual Output. b. Unit Labor Standard Practical Output. c. Unit Labor Standard Standard Output. d. Unit Labor Standard Normal Output. e. Unit Labor Standard Theoretical Output.

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