ABC Allocation Rate Assignment | Top Universities
H&Y Company uses four activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows: Activity Material handling Purchase orders Set-up hours Total Costs $570,700 203,760 324,940 448,440 $1,547,840 Volume of Cost Driver 114,140 parts 36 orders 154 hours 3,030 machine hours Machining Total costs The above activities are used by the two different products as follows: PC-21 Material handling Purchase orders Set-up hours Number of machine-hours 75,580 parts 21 113 hours 2,180 machine hours WX-34 38,560 parts 15 41 hours 850 machine hours Calculate how much of the material handling cost will be allocated to PC-21. Material handling cost allocated to PC-21 Determine the ABC allocation rate for purchase orders. Activity-based allocation rates per order
Calculate how much of the set-up costs will be allocated to WX-34. Calculate how much of the set-up costs will be allocated to WX-34. Set-up costs allocated to WX-34 s Calculate how much of the total activity costs will be allocated to PC-21. Total activity costs allocated to PC-215. Get Accounting homework help today