Scribd Logo
Upload

Welcome to Scribd!

  • ABC Costing Quiz

    Uploaded by

    Hammad Misbah
    6 views4 pages
    The document outlines the allocation of overheads across various indirect cost categories. It allocates $20,000 of indirect labor costs with 50% ($10,000) going to production, 40% ($8,000) to production set ups, and 10% ($2,000) to record maintenance. Fringe benefits of $16,000 are split equally between direct and indirect labor. Computer systems of $10,000 are allocated with 80% ($8,000) for production and 20% ($2,000) for record keeping. Machinery, maintenance, and energy costs of $8,000, $4,000, and $2,000 respectively support production capacity. Indirect fringe benefits are then allocated based

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document outlines the allocation of overheads across various indirect cost categories. It allocates $20,000 of indirect labor costs with 50% ($10,000) going to production, 40% ($8,000) to production set ups, and 10% ($2,000) to record maintenance. Fringe benefits of $16,000 are split equally between direct and indirect labor. Computer systems of $10,000 are allocated with 80% ($8,000) for production and 20% ($2,000) for record keeping. Machinery, maintenance, and energy costs of $8,000, $4,000, and $2,000 respectively support production capacity. Indirect fringe benefits are then allocated based

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views4 pages

    ABC Costing Quiz

    Uploaded by

    Hammad Misbah
    The document outlines the allocation of overheads across various indirect cost categories. It allocates $20,000 of indirect labor costs with 50% ($10,000) going to production, 40% ($8,000) to production set ups, and 10% ($2,000) to record maintenance. Fringe benefits of $16,000 are split equally between direct and indirect labor. Computer systems of $10,000 are allocated with 80% ($8,000) for production and 20% ($2,000) for record keeping. Machinery, maintenance, and energy costs of $8,000, $4,000, and $2,000 respectively support production capacity. Indirect fringe benefits are then allocated based

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Overheads Division as per Data

    Indirect Labour
    $20,000

    50% of Indirect Labour for Production $10,000


    40% of Indirect Labour for Production Set ups $8,000
    10% of Indirect Labour for Record Maintenance and misc administrative works $2,000

    Fringe Benefits
    $16,000
    Divided on direct and indirect labor; splitting in half

    For direct labour $8,000


    For Indirect labour $8,000

    Computer Systems
    $10,000

    80% computer usaage for production activities $8,000


    20% computer usage for record keeping etc. $2,000

    Machinery
    $8,000
    Used for supplying machine capacity for production

    Maintenance
    $4,000
    Used for supplying machine capacity for production

    Energy
    $2,000
    Used for supplying machine capacity for production
    Indirect Fringe Division based on above indirect labor activities --> For Production Run
    For Set up
    For Admin. Work
    Activities Cost Drivers Quantity Activity Cost
    Production Run Production Runs 150 $22,000
    Set - up Setup time 526 $11,200
    Parts Administration Parts Administration 4 $4,800
    Support Machine Hours 10000 $14,000
    Direct Labour Fringe DLH 2000 $8,000

    $4,000
    $3,200
    $800
    Per Activity Rate

    You might also like