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oduct NZ16. Ha lative to those a Activity Cost Po Machine set-ups Assembling nspection

oduct NZ16. Ha lative to those a Activity Cost Po Machine set-ups Assembling nspection

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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Pharoah Industries has three activity cost pools and two products. It expects to produce 2,800 units of Product SZ09 and 1,300 of Product NZ16. Having identified its activity cost pools and the cost drivers for each pool, Pharoah accumulated the following data relative to those activity cost pools and cost drivers. Activity Cost Pool Machine set-ups Assembling Inspection Machine set-ups Calculate the overhead rates. Assembling Inspection SZ09 $ Cost Driver Set-ups Machine hours NZ16 $ Inspections GA LA $ LA Assign the overhead cost to the two products. ta Estimated Overhead $63,600 354,000 6,160 Estimated Use of Cost Drivers per set-up 200 17,700 per inspection 110 per machine hour SZ09 130 NZ16 60 70 10,300 7,400 50
Transcribed Image Text:Pharoah Industries has three activity cost pools and two products. It expects to produce 2,800 units of Product SZ09 and 1,300 of Product NZ16. Having identified its activity cost pools and the cost drivers for each pool, Pharoah accumulated the following data relative to those activity cost pools and cost drivers. Activity Cost Pool Machine set-ups Assembling Inspection Machine set-ups Calculate the overhead rates. Assembling Inspection SZ09 $ Cost Driver Set-ups Machine hours NZ16 $ Inspections GA LA $ LA Assign the overhead cost to the two products. ta Estimated Overhead $63,600 354,000 6,160 Estimated Use of Cost Drivers per set-up 200 17,700 per inspection 110 per machine hour SZ09 130 NZ16 60 70 10,300 7,400 50
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