Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways. (Round answers to 2 decimal places, eg. 12.25) WATERWAYS CORPORATION Estimated Use of Cost Activity Cost Pools Use of Cost Drivers Estimated Drivers per Activity Cost Drivers Overhead Irrigation installation Labor cost $2,094,400 12,320 12,304 Machining (all machine use) Machine hours 1,560,100 31,202,000 31,203,000 Customer orders Number of orders 33,480 2,790 2,759 Shipping none (direct) N/A N/A traced directly Design Cost per design 752 Selling Number of sales calls 306,000 20,400 20.620 WATERWAYS CORPORATION Activity- Based Actual Cost Activity Cost Pools Overhead Rates Assigned Irrigation installation Machining (all machine use) Customer orders Design Selling
Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways. (Round answers to 2 decimal places, eg. 12.25) WATERWAYS CORPORATION Estimated Use of Cost Activity Cost Pools Use of Cost Drivers Estimated Drivers per Activity Cost Drivers Overhead Irrigation installation Labor cost $2,094,400 12,320 12,304 Machining (all machine use) Machine hours 1,560,100 31,202,000 31,203,000 Customer orders Number of orders 33,480 2,790 2,759 Shipping none (direct) N/A N/A traced directly Design Cost per design 752 Selling Number of sales calls 306,000 20,400 20.620 WATERWAYS CORPORATION Activity- Based Actual Cost Activity Cost Pools Overhead Rates Assigned Irrigation installation Machining (all machine use) Customer orders Design Selling
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a
possible ABC system for Waterways. (Round answers to 2 decimal places, eg. 12.25)
WATERWAYS CORPORATION
Estimated
Use of Cost
Drivers per
Activity Cost
Estimated
Use of Cost
Pools
Cost Drivers
Overhead
Activity
Drivers
Irrigation installation
Labor cost
$2,094,400
12,320
12,304
Machining (all machine use)
Machine hours
1,560,100
31,202,000
31,203,000
Customer orders
Number of orders
33,480
2,790
2,759
Shipping
none (direct)
N/A
N/A
traced directly
Design
Cost per design
752
8
Selling
Number of sales calls
306,000
20,400
20.620
WATERWAYS CORPORATION
Activity-
Based
Overhead
Actual
Activity Cost
Cost
Pools
Rates
Assigned
Irrigation installation
Machining (all machine use)
Customer orders
Design
Selling
%24
%24
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