Answered

Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Connect with a community of experts ready to help you find accurate solutions to your questions quickly and efficiently. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

A company has two products: Cakes and Cookies. It uses activity-based costing and has prepared the following analysis showing budgeted costs and activities. Use this information to compute (a) the company's overhead rates for each of the three activities and (b) the amount of overhead allocated to Cakes.

Sagot :

Answer and Explanation:

The computation is shown below:

a. Overhead rate for each of the three activities is

For activity 1

= $60,000 ÷1500

= $40

For activity 2

= $75,000 ÷ 3,000

= $25

For activity 3

= $90,000 ÷ 1,700

= $53

b. The amount of overhead allocated is

= 40 ×700 + 25 × 1500 + 800 × 53

= $28,000 + $37,500 + $42,400

= $107,900

View image andromache
We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.