Scribd Logo
Upload

Welcome to Scribd!

  • Activity Based Costing

    Uploaded by

    Hsn ali
    2 views2 pages
    This document outlines an activity-based costing model to allocate $800,000 of manufacturing overhead costs across various production activities. It lists the estimated monthly overhead for each activity area and calculates an overhead rate per activity unit, such as $1.60 per labor hour, $30 per machine setup, and $6.25 per general factory machine hour. The overhead rates can be applied to various production orders and items to allocate total overhead costs based on consumption of each activity.

    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
    This document outlines an activity-based costing model to allocate $800,000 of manufacturing overhead costs across various production activities. It lists the estimated monthly overhead for each activity area and calculates an overhead rate per activity unit, such as $1.60 per labor hour, $30 per machine setup, and $6.25 per general factory machine hour. The overhead rates can be applied to various production orders and items to allocate total overhead costs based on consumption of each activity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views2 pages

    Activity Based Costing

    Uploaded by

    Hsn ali
    This document outlines an activity-based costing model to allocate $800,000 of manufacturing overhead costs across various production activities. It lists the estimated monthly overhead for each activity area and calculates an overhead rate per activity unit, such as $1.60 per labor hour, $30 per machine setup, and $6.25 per general factory machine hour. The overhead rates can be applied to various production orders and items to allocate total overhead costs based on consumption of each activity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    © Corporate Finance Institute®. All rights reserved.

    Activity Based Costing - Allocating Overhead Costs

    Activity Estimated MOH


    Labour Related $80,000.00
    Machine setups $150,000.00
    Part administration $160,000.00
    Production Orders $70,000.00
    Material Receipts $90,000.00
    General factory machine hours $250,000.00
    Total $800,000.00

    This file is for educational purposes only. E&OE

    Corporate Finance Institute®


    https://corporatefinanceinstitute.com/
    Overhead Rate (per
    Total per Activity activity)
    50000 hours $1.60
    5,000 setups $30.00
    80 parts $2,000.00
    400 orders $175.00
    750 receipts $120.00
    40,000 machine hours $6.25

    You might also like