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Home > Business & Careers > Accounting   »   activity based accounting

 
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Old Jun 7, 2007, 07:30 AM
BIGMIKEW
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activity based accounting

expected activity
activity cost pool est. overhead costs total X-20 Y-30
machine setups (# of setups) $ 208,000 1,600 1,000 600
quality control (# of inspections) 360,000 9,000 4,000 5,000
purchase orders (# of orders) 90,000 1,200 840 360
soldering (# of solder joints) 450,000 200,000 60,000 140,000
shipments (# of shipments) 132,000 600 400 200
machine related (machine-hours) 560,000 70,000 30,000 40,000
$1,800,000

predetermined overhead rate is $24.00
unit product costs are $122.00 (X-20), & $188.00 (Y-30).

assume that the company's $1,800,000 in manufacturing overhead cost can be assigned to 6 activity cost pools (listed above). would you support a recommendation to expand sales of the Y-30? explain.

can someone please help me get started in the right direction? I thank you in advance for your much needed help.

For some reason everything is grouped together but there's four groups that numbers go under est overhead costs, [total, x-20, & y-30(expected activity)].

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