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Home Q & A Board Other Fields Homework Help Business Accounting
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neezy neezy
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A month ago
Turnbull Company produces two products and their overhead consists of setups $20,000; machining $2,220,000; and packing $80,000. Data for the current year follow:

BetaDelta
Number of setups2020
Machine hours1,0004,000
Packing orders150350
Number of units produced600400

The overhead allocated to Beta assuming a single overhead rate based on machine hours and assuming ABC, respectively, are

▸ $256,000 and $478,000.

▸ $464,000 and $456,000.

▸ $464,000 and $478,000.

▸ $256,000 and $242,000.
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Managerial Accounting

Managerial Accounting


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webmom2008webmom2008
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A month ago
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$464,000 and $478,000.

Solution: Total costs = $20,000 + $2,220,000 + $80,000 = $2,320,000;
Single OH Rate Allocation Beta: $2,320,000 × [1,000 ÷ (1,000 + 4,000)] = $464,000;
Setups: $20,000 ÷ (20 + 20 setups) = $500 per setup;
Machining: $2,220,000 ÷ (1,000 + 4,000 MH) = $444 per MH;
Packing: $80,000 ÷ (150 + 350 orders) = $160 per order;
Solution for ABC: Beta: (20 × $500) + (1,000 × $444) + (150 × $160) = $478,000
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