Question

to $ 18,700 S 85,470 4,900 hours29,000 39,840 19,000

Answer 1

Answer 1.
Overhead Assigned Under
Traditional Costing
	Macine Hours	Ovehead Assigned
Indoor Model	22000	63,946
		($136612/47000 Hrs) X 22000 Hrs
Outdoor Model	25000	72,666
		($136612/47000 Hrs) X 25000 Hrs
Total	47000	136,612

Answer 2.
Activity Proportions for each Cost Pool
As per ABC System
	Indoor Line		Oudoor Line
	Qty	In %	Qty	In %
Material Handling	560	56.57%	430	43.43%	Per Move
		(560/990 X 100)		(430/990 X 100)
Quality Control	6000	54.05%	5100	45.95%	per Inspection
		(6000/11100 X 100)		(5100/11100 X 100)
Maintenance	22000	46.81%	25000	53.91%	Per Machine hour
		(22000/47000 X 100)		(2500/47000 X 100)

Answer 3.
Overhead Applied to Indoor Model
	Total Overhead	Overhead Applied
Material Handling	$18,661	10,555.72
		($18661 X 56.57%)
Quality Control	$76,590	41,400.00
		($76590 X 54.05%)
Maintenance	$41,360	19,360.00
		($41360 X 46.81%)
Total	$136,611	$71,316
Answer 4.
Overhead Applied to Outdoor Model
	Total Overhead	Overhead Applied
Material Handling	$18,661	8,105.28
		($18661 X 43.43%)
Quality Control	$76,590	35,190.00
		($76590 X 45.95%)
Maintenance	$41,360	22,000.00
		($41360 X 53.91%)
Total	$136,611	$65,295