Determine the overhead allocation for the batch of 200

Reference no: EM13597800

The following overhead cost information is available:

Activity-------Allocation Base---------overhead cost
Purchasing--#of purchase orders---$400000
Receiving---# of shipments-----------100000
Machine-----# of setups---------------300000
Assembly---direct labor hours-------125000
Quality-------# of inspections---------75000

During the year:

1000 purchase orders issued
300 shipments
600 machine setups
750 inspections
employees worked 10000 direct labor hours

A batch of 200 has the following cost activity

purchase orders 7
shipments of material 12
machine setups 2
direct labor 50
inspections 3

A: Determine the overhead allocation for the batch of 200 monitors under the TRADITIONAL overhead allocation base on direct labor hours

B: Determine the overhead allocation for batch under ACTIVITY BASED costing. Round interim calculations and final answer to two decimal points

Reference no: EM13597800

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