Pro-Craft Company computed the following activity rates to allocate overhead cost for the year.   Activity Activity Rate Materials handling $ 59 per materials requisition Quality inspection $ 49 per inspection Utilities $ 6 per machine hour During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates.   Activity Cost Driver Activity Usage Job A Job B Materials requisitions 4 2 Inspections 7 3 Machine hours 345 245

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

Pro-Craft Company computed the following activity rates to allocate overhead cost for the year.
 

Activity Activity Rate
Materials handling $ 59 per materials requisition
Quality inspection $ 49 per inspection
Utilities $ 6 per machine hour


During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates.
 

Activity Cost Driver Activity Usage
Job A Job B
Materials requisitions 4 2
Inspections 7 3
Machine hours 345 245
During January, the company produced the following two Jobs. Allocate overhead cost to each Job using the activity rates.
Activity Cost Driver
Materials requisitions
Inspections
Machine hours
Activity Usage
Job A
4
7
345
Job B
2
3
245
Allocate overhead based on actual activity usage-Job A
Activity
Activity Usage
Materials handling
Quality inspection
Utilities
Total
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
$
0
0
Transcribed Image Text:During January, the company produced the following two Jobs. Allocate overhead cost to each Job using the activity rates. Activity Cost Driver Materials requisitions Inspections Machine hours Activity Usage Job A 4 7 345 Job B 2 3 245 Allocate overhead based on actual activity usage-Job A Activity Activity Usage Materials handling Quality inspection Utilities Total 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 $ 0 0
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education