Maurice Tutor

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Category > Management Posted 09 Jan 2018 My Price 6.00

jeans and khakis.

Activity-based costing: factory overhead   costs

The total factory overhead for Diva-nation is budgeted for the year at $180,000, divided into four activities: cutting, $18,000; sewing, $36,000; setup, $96,000; and inspection, $30,000. Diva-nation manufactures two types of men’s pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as   follows:

 

 

Cutting

Sewing

Setup

Inspection

Jeans Khakis

800 dlh

1,200

1,200 dlh

   800

1,400 setups

1,000

3,000 inspections

2,000

 

2,000 dlh

2,000 dlh

2,400 setups

5,000 inspections

 

Each product is budgeted for 20,000 units of production for the year. Determine (a) the activity rates for each activity and (b) the activity-based factory overhead per unit for each  product.

Answers

Maurice Tutor
(5)
Status NEW Posted 09 Jan 2018 09:01 PM My Price 6.00

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