Solution-Discuss what is the allocated overhead costs for

Discuss what is the allocated overhead costs for the repair

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Reference no: EM131794075

Jacob Industries produces two electronic decoders, A and B. Decoder A is more sophisticated and requires more programming and testing than does Decoder B. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity centers and their related information as follows.

Activity Centers	Cost Pool Total	Cost Driver
Repair & maintenance on assembly machine	$102,000.00	number of units produced
Programming Costs	175,300.00	number of program hours
Software inspections	18,000.00	number of inspections
Product testing	25,000.00	number of tests
Total overhead costs	$320,300.00

Expected activity for each product follows:

	Number Of Units	Number of Programming Hrs.	Number of Inspections	Number of Tests
Decoder A	25,000	2,300	210	1,385
Decoder B	32,000	1,750	75	1,250
Totals	57,000	4,050	285	2,635

What is the allocated overhead costs for the Repair & Maintenance center for Decoder A?

Reference no: EM131794075

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Discuss what is the allocated overhead costs for the repair

Reference no: EM131794075

Reference no: EM131794075

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