Taylor Company has two products: A and B. The anual production and sales level of Product A is 9,094 units. The aruual production and sales level of Product B is 15,826. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools, Activity Cost Estimated Expected Activity Total Pool Overhead Cost Product A Product B P 29,200 1,000 500 1,500 12 P40,000 200 800 1,000 13 P 180,000 600 5,400 6,000
Taylor Company has two products: A and B. The anual production and sales level of Product A is 9,094 units. The aruual production and sales level of Product B is 15,826. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools, Activity Cost Estimated Expected Activity Total Pool Overhead Cost Product A Product B P 29,200 1,000 500 1,500 12 P40,000 200 800 1,000 13 P 180,000 600 5,400 6,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. What is the activity rate for Activity 1, Activity 2, and Activity 3? (figures only, round off 2 decimal places).
2.What is the overhead cost attributed to Product A and Product B?
Transcribed Image Text:Taylor Company has two products: A and B. The annual production and sales level of
Product A is 9,094 units. The aruual production and sales level of Product Bis 15,826.
The company uses activity-based costing and has prepared the following analysis
showing the estimated total cost and expected activity for each of its three activity cost
pools.
Activity Cost
Estimated
Expected Activity
Total
Pool
Overhead Cost
Product A
Product B
#1
P 29,200
1,000
500
1,500
12
P 40,000
200
800
1,000
13
P 180,000
600
5,400
6,000
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