1.
To calculate: The total overhead allocated to each job under a simple costing system allocated based on machine hours.
Given information:
Machine hours of Job 215 are 40 hours.
Machine hours of Job 325 are 60 hours.
Total budgeted overheads are $226,800.
Total machine hours are 10,500 hours
2.
To calculate: The total overhead allocated to each job under the activity based coating system.
Given information:
Total budgeted packaging overheads are $19,950.
Total number of units produced is 3,800.
Total budgeted purchasing overheads are $35,000.
Total number of purchase orders processed is 2,000.
Total budgeted material handling overheads are $43,750.
Total material moves are 5,000.
Total budgeted machine maintenance overheads are $118,650.
Total machine hours are 10,500.
Total budgeted product inspection overheads are $9,450.
Total number of inspections is 1,200.
3.
To explain: The reason of preferring the ABC system over Simple costing system.
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Chapter 5 Solutions
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