Wilkins inc has two types of handbags standard and custom

Assignment Help Accounting Basics

Reference no: EM13586657

Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations.
Standard Custom

Direct labor costs $55,500 $97,200
Machine Hours 1,150 1,270
Setup hours 100 380

Total estimated overhead costs are $304,000. Overhead cost allocated to the machining activity cost pool is $195,300, and $108,700 is allocated to the machine setup activity cost pool.

Instructions
(a) Compute the overhead rate using the traditional (plantwide) approach.
(b) Compute the overhead rates using the activity-based costing approach.
(c) Determine the difference in allocation between the two approaches.

Reference no: EM13586657

Questions Cloud

The average cost of groceries has risen by 42 in the last : 1. determine if this is an example of probability or statistics the average cost of groceries has risen by 4.2 in the

Cliff height you are climbing in the high sierra where you : question cliff height you are climbing in the high sierra where you suddenly find yourself at the edge of a

Koffee express operates a number of espresso coffee stands : koffee express operates a number of espresso coffee stands in busy suburban malls. the fixed weekly expense of a coffee

What total monthly sales revenue is required to break even : malibu corporation has monthly fixed costs of 66000. it sells two products for which it has provided the following

Wilkins inc has two types of handbags standard and custom : wilkins inc. has two types of handbags standard and custom. the controller has decided to use a plantwide overhead rate

Jessich inc management estimates that 39 of credit sales : jessich inc management estimates that 39 of credit sales will be collected in the month of sale with a 2 prompt payment

Determine if this is an example of probability or : 1. determine if this is an example of probability or statistics the average cost of groceries has risen by 4.2 in the

During 2010 tom sold sears stock for 10000 the stock was : martin sells a stock investment for 25000 on august 2 2010. martins adjusted basis in the stock is 14000.a. if martin

Nord company had 375000 of current assets and 150000 of : nord company had 375000 of current assets and 150000 of current liabilities before borrowing 70000 from the bank with a

User Account

All Pages