Determine the overhead allocation for the batch of 200

Reference no: EM13600362

# of purchase orders $400,000 overhead cost

# of shipments $100,000

# of setups $300,000

Direct labor hrs$125,000

# of inspections $75,000

During the year, 1000 purchase orders, 300 shipments, 600 setups, 750 inspections & 10,000 direct labor hours occurred to assemble monitors.

Assume a batch of 200 monitors has the following cost activity:

Purchase order 7
Material shipments 12
Machine setups 2
Direct labor hours50
Inspections 3

1.Determine the overhead allocation for the batch of 200 monitors under the traditional overhead allocation based on direct hours?

2. Overhead allocated for receiving is $3,999.96. Determine overhead allocation for the batch under activity-based costing?

Reference no: EM13600362

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