Question

C 5114.00 What will the allocation Cat Drive PA Frut will the allocate t AO 334,169 BOS NO 100 71,100 51.00 h at to two decal C O S60442 DO 50358 XO 5106916 YOSH be Company wants to estimate total cost 50 units analyzed January overhead plus adninistrative) in March, when you with the w w w

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

Answer 3 In the given question we have to calculate the overheads allocated to product A = (activity of cost pool 1* overhead rate of cost pool 1)+(activity of cost pool 2* overhead rate of cost pool 2)+(activity of cost pool 3* overhead rate of cost pool 3) 5 6 7 = (86200*(114000/157300))+(63100*(57000/114500))+(73900*(23000/125600)) = (86200*.72)+(63100*.5)+(73900*.18) = $ 106916 9 Thus the correct answer is E) $ 106916 11 Note 12 Overhead rate/ activity rate has been rounded off to 2 decimal places) 14 Thank You