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Author Question: Camilla, Inc. uses activity-based costing to cost its two products: Standard and Deluxe. The company ... (Read 39 times)

amymoore

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Camilla, Inc. uses activity-based costing to cost its two products: Standard and Deluxe. The company has provided the following data relating to its activities:

Cost PoolsEstimated Cost
Machine (machine-hours)$144,000
Cutting (number of cuts)536,000
Sales (number of orders)108,000


Estimated Activity
StandardDeluxe
Machine hours1,0007,000
Number of cuts3,0005,000
Number of orders7,0002,000

Required:

a.What is the activity rate for the sales cost pool?
b.If actual activity is the same as that estimated, what is the total amount of overhead
cost
allocated to the Deluxe product?


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Marked as best answer by amymoore on Feb 5, 2023

miro2222

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amymoore

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Reply 2 on: Feb 5, 2023
Thanks for the timely response, appreciate it


pratush dev

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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