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IGL Draperies makes custom draperies for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools.
Overhead costs:
Production overhead....
$140,000
Office expense.............
140,000
Total.............................
$280,000
Distribution of resource consumption:
Activity Cost Pools
Making Drapes
Job Support
Other
Total
60%
20%
100%
15%
55%
30%
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.
The amount of activity for the year is as follows:
Activity Cost Pool
Annual Activity
Making drapes.......
3,000
yards
Job support.............
140
jobs
Other......................
Not
applicable
Required:
a. Prepare the first-stage allocation of overhead costs to the activity cost pools by filling in the table below:
b. Compute the activity rates (i.e., cost per unit of activity) for the Making Drapes and Job Support activity cost pools by filling in the table below:
c. Prepare an action analysis report in good form of a job that involves making 85 yards of drapes and has direct materials and direct labor cost of $2,990. The sales revenue from this job is $6,000. For purposes of this action analysis report, direct materials and direct labor should be classified as a Green cost; production overhead as a Red cost; and office expense as a Yellow cost.
In addition, you will also need to create a state machine diagram for the RegistrationRecord class (the class that maintains the registration of a student in a class).
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