Compute the predetermined overhead rate for the company as

Assignment Help Accounting Basics

Reference no: EM13597225

Ramos Company has identivied the following overhead activities, costs, and activity drivers for the coming year:

Activity Expected Cost Activity Driver Activity Capacity

Equip Set-up 120,000 No. of Set-ups 300
Ordering Costs 90,000 No. of Orders 9,000
Machine Costs 210,000 Machine Hours 21,000
Receiving 100,000 Receiving Hours 5,000
Total Overhead 520,000

The Company's normal activity is 4,000 direct labor hours.

Activity A: Activity B:

3,000 direct labor hours 1,000 direct labor hours
200 setups 100 setups
3,000 orders 6,000 orders
12,000 machine hours 9,000 machine hours
1,500 receiving hours 3,500 receiving hours

Required:
1. Compute the predetermined overhead rate for the company as a whole based on direct labor hours.
2. Compute the activity rates for each activity.
3. Compute the overhead cost applied to each model using the four activity drivers.

Reference no: EM13597225

Questions Cloud

Hardigan manufacturing company reported the following : hardigan manufacturing company reported the following year-end information beginning work in process inventory 80000

Dekin company had checks outstanding totaling 6400 on its : dekin company had checks outstanding totaling 6.400 on its may bank reconciliation. in june dekin company issued checks

The income statement for crestwood golf club for the month : the income statement for crestwood golf club for the month ending july 31 shows green fee revenue 14255 salaries

During feb 2010 its first month of operations the owner of : during feb 2010 its first month of operations the owner of schwenn enterprise invested cash of 25000. schwenn had cash

Compute the predetermined overhead rate for the company as : ramos company has identivied the following overhead activities costs and activity drivers for the coming year activity

Masoon corporation has current assets of 1500000 and : masoon corporation has current assets of 1500000 and current liabilities of 750000. if they pay 250000 of their

A company has a minimum required rate of return of 8 it is : a company has a minimum required rate of return of 8. it is considering investing in a project that costs 91116 and is

Wasson widget company is contemplating the production and : wasson widget company is contemplating the production and sale of a new widget. projected sales are 187500 or 75000

Management of the catering company would like the food : management of the catering company would like the food division to transfer 10000 cans of its final product to the

User Account

All Pages