Biology Forums - Study Force

Other Fields Homework Help Accounting Topic started by: blinkrb on Jan 29, 2023



Title: Clover Manufacturing Company makes two products. Using the traditional allocation method, the ...
Post by: blinkrb on Jan 29, 2023
Clover Manufacturing Company makes two products. Using the traditional allocation method, the company has allocated overhead based on estimated total direct labor cost of $125,000. Clover recently implemented an activity-based costing system and had determined that overhead can be broken into three overhead pools: cutting, machine setups, and shipping. The following is a summary of company information:

Estimated CostEstimated Activities
Cutting$  24,000500 cuts
Machine setups    8,000200 machine hours
Shipping   20,00040,000 shipments
$52,000

Required:

a.Calculate the company's overhead rate as a percentage of direct labor cost.
b.Calculate the company's overhead rates using the activity-based costing pools.


Title: Clover Manufacturing Company makes two products. Using the traditional allocation method, the ...
Post by: jjwatson on Jan 29, 2023
Content hidden