Rundle industries produces two electronic decoders, P and O. Decoder P is mere sophisticated and requires more programming and tõeting thân Años Börnder & Rörálies of these product difforoncós, thô rompany wante ta liês artivity-hääöd eñeting ta ällärätä overhead casts: It has identified four activity poels. Relevant information follows: Activity Pocis Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost Expected activity for each product follows: Decoder P Decoder Q Total Number of Number of Programming Hours 2,200 1,500 3,700 Units 18,000 37,000 55,000 Required a. Compute the overhead rate for each activity pool. b. Determine the overhead cost allocated to each product. Required A Required B Decoder P Decoder Q Total Allocated Cost $ $ Complete this question by entering your answers in the tabs below. Cost Pool Total $ 60,500 88,060 8,320 11, 200 $ 168,080 Determine the overhead cost allocated to each product. Note: Round intermediate calculations to 2 decimal places. Number of Number of Inspections Tests 190 1,400 130 2,100 3,500 320 75,260 92,820 Cost Driver Number of units produced Number of programming hours Number of inspections Number of tests X Answer is complete but not entirely correct. < Required A Required B >
Rundle industries produces two electronic decoders, P and O. Decoder P is mere sophisticated and requires more programming and tõeting thân Años Börnder & Rörálies of these product difforoncós, thô rompany wante ta liês artivity-hääöd eñeting ta ällärätä overhead casts: It has identified four activity poels. Relevant information follows: Activity Pocis Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost Expected activity for each product follows: Decoder P Decoder Q Total Number of Number of Programming Hours 2,200 1,500 3,700 Units 18,000 37,000 55,000 Required a. Compute the overhead rate for each activity pool. b. Determine the overhead cost allocated to each product. Required A Required B Decoder P Decoder Q Total Allocated Cost $ $ Complete this question by entering your answers in the tabs below. Cost Pool Total $ 60,500 88,060 8,320 11, 200 $ 168,080 Determine the overhead cost allocated to each product. Note: Round intermediate calculations to 2 decimal places. Number of Number of Inspections Tests 190 1,400 130 2,100 3,500 320 75,260 92,820 Cost Driver Number of units produced Number of programming hours Number of inspections Number of tests X Answer is complete but not entirely correct. < Required A Required B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:Rundlo Industrise produese two oloctronie docodore, P and O. Docodor P ie moro cophisticated and requiroe moro programming and
tosting than Años Borndor & Rocausó of those product differoncos, the company wante fó lisó ártivity-hasod čosting to allocate
overhead casts. It has identified four activity pools: Relevant information fellows:
Activity Pools
Repair and maintenance on assembly machine
Programming cost
Software inspections
Product testing
Total overhead cost
Expected activity for each product follows:
Decoder P
Decoder Q
Total
Number of
Number of Programming
Hours
2,200
1,500
3,700
Units
18,000
37,000
55,000
Required
a. Compute the overhead rate for each activity pool.
b. Determine the overhead cost allocated to each product.
Required A Required B
Decoder P
Decoder Q
Total Allocated Cost
$
$
Complete this question by entering your answers in the tabs below.
Cost Pool
Total
$ 60,500
88,060
8,320
11, 200
$ 168,080
Determine the overhead cost allocated to each product.
Note: Round intermediate calculations to 2 decimal places.
Number of Number of
Inspections Tests
190
1,400
130
2,100
320
3,500
75,260 x
92,820 X
Cost Driver
Number of units produced
Number of programming hours
Number of inspections
Number of tests
Answer is complete but not entirely correct.
< Required A
Required B >
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