Sunland Industries has three activity cost pools and two products. It estimates production of 3,000 units of Product BC113 and 1,400 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Sunland accumulated the following data elative to those activity cost pools and cost drivers. Annual Overhead Data Activity Cost Pool Machine set-up Machining Packing Cost Drivers Set-ups Machine hours Orders Estimated Overhead $ 18,040 113,300 32,000 Estimated Use of Cost Drivers per Activity 41 5,150 500 Use of Cost Drivers per Product Product BC113 26 1,030 150 Product AD908 15 4,120 350

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...
icon
Related questions
Topic Video
Question
Please do not give solution in image format thanku
Prepare a schedule showing the calculations of the activity-based overhead rates per cost driver.
Cost Pool
Machine set-
up
Machining
Packing
Machine set-up
$
Machining
$
Packing
$
Assignment of overhead:
Estimated
MOH
Prepare a schedule assigning each activity's overhead cost to the two products.
Overhead assigned
$
$
Estimated
Usage
BC113
$
$
$
$
$
$
AD908
Rate
per set-up
per machine
hr.
per order
Transcribed Image Text:Prepare a schedule showing the calculations of the activity-based overhead rates per cost driver. Cost Pool Machine set- up Machining Packing Machine set-up $ Machining $ Packing $ Assignment of overhead: Estimated MOH Prepare a schedule assigning each activity's overhead cost to the two products. Overhead assigned $ $ Estimated Usage BC113 $ $ $ $ $ $ AD908 Rate per set-up per machine hr. per order
Sunland Industries has three activity cost pools and two products. It estimates production of 3,000 units of Product BC113 and 1,400
of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Sunland accumulated the following data
relative to those activity cost pools and cost drivers.
Annual Overhead Data
Activity Cost Pool
Machine set-up
Machining
Packing
Cost Drivers
Set-ups
Machine hours
Orders
Estimated
Overhead
$ 18,040
113,300
32,000
Estimated Use of
Cost Drivers per Activity
41
5,150
500
Use of Cost Drivers
per Product
Product
BC113
26
1,030
150
Product
AD908
15
4,120
350
Transcribed Image Text:Sunland Industries has three activity cost pools and two products. It estimates production of 3,000 units of Product BC113 and 1,400 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Sunland accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Activity Cost Pool Machine set-up Machining Packing Cost Drivers Set-ups Machine hours Orders Estimated Overhead $ 18,040 113,300 32,000 Estimated Use of Cost Drivers per Activity 41 5,150 500 Use of Cost Drivers per Product Product BC113 26 1,030 150 Product AD908 15 4,120 350
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning