Describing the allocation of overheads

Assignment Help Managerial Accounting
Reference no: EM1347194

ABC currently employs traditional costing procedures, applying $410,000 of overhead to products X and Y on the basis of direct labor hours. The firm is considering the shift to activity-based costing and creation of individual cost pools that will employ direct labor hours (DLH), production setups (SU), and number of parts components (PC) as cost drivers. Data on the cost pools and respective driver volumes is:

Pool #1 Pool #2 Pool #3
Product (DLH) (SU) (PC)
X 900 30 1,500
Y 1,400 50 1,000
Pool Cost $90,000 $140,000 $180,000

A) Overhead cost allocated to product Y by using traditional costing procedures would be:

B) Overhead cost allocated to product Y by using activity-based costing would be:

Reference no: EM1347194

Determine the return on investment and the payback period

Analyze the potential opening of the patio from a qualitative standpoint. Include a discussion of the pros and cons of the patio and discuss the implications of each.

Calculate the number of tickets sunshine

Calculate the number of tickets Sunshine must sell each month to (a) break even and (b) make a target operating income of $10,000 per month in each of the following independ

Prepare a schedule of cost of goods manufactured

ACC200 Introduction to Management Accounting - Prepare a Schedule of Cost of Goods Manufactured and Cost of Goods Sold. (The schedules may be in the appendix). Explain why so

What does traceability mean and what is tracing

What does traceability mean? What is tracing? What is allocation? What are drivers? Give an example of a driver. Explain the difference between direct tracing and dri

Reduce the effectiveness of the system

Identify the problems that appear to exist in Ferguson and Son Manufacturing Company's budgetary control system and explain how the problems are likely to reduce the effective

Straight-line method

Based on the following questions, ignore income taxes and make the assumption that the company's compulsory return is 14%. In order to calculate the depreciation, this company

Us budget deficits foreign financed

Describe the relationship between the trade deficit and financing of the U.S. budget deficit by foreign countries. Is this the potentially dangerous situation?

The best in the history of the company

"In my opinion, it will be a mistake if that new plant is built," said Carl Roberts, controller of Tanka Toys. "Why, if that plant was in existence right now, we would be repo

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd