Q 14)

Total Overhead cost

Machine setups cost 48,400
Inspection cost 72,000
Total Overhead cost 120,400
Total Labor hours
Dining chairs 2,400
Table 2,490
Total hours 4,890

Plantwide rate 120,400/ 4,890

$ 24.62

Allocation of cost
Dining Chairs Table
Labor hours (a) 2,400 2,490
Plant wide rate (b) $ 24.62 $ 24.62
Total cost (a × b) $ 59,092 $ 61,308

Q15)
Activity rate
Total Cost Total Activity Activity rate
(a) (b) (a/b)
Machine setups cost $ 48,400 820 $ 59.02
Inspection cost $ 72,000 710 $ 101.41

Allocation of cost
Activity rate Dining Chairs Tables
Activity Cost Activity Cost
(A) (B) (A × B) (C) (A × C)
Machine setups cost $ 59.02 220 $ 12,985 600 $ 35,415
Inspection cost $ 101.41 250 $ 25,352 460 $ 46,648
$ 38,337 $ 82,063

Total Cost Allocation

Dining Chairs Table
Overhead cost $ 38,337 $ 82,063