Saturday, 11 April 2015

DS Company has identified the following cost pools and activity rates:

DS Company has identified the following cost pools and activity rates:


Activity Cost Pool Activity Rate Supporting direct labor $4 per direct labor hour Machine processing $3 per machine hour Machine setups $30 per setup Production orders $11 per order Shipments $98 per shipment Product sustaining $750 per product Activity data have been supplied for the following products: Total Expected Activity D130 S150 Direct labor hours 2,500 300 Machine hours 4,300 250 Machine Setups 7 2 Production orders 3 2 Shipments 9 4 Products sustaining 2


1 Determine the total overhead cost that would be assigned to each of the products listed above in the activity based costing system: show computations and details


a. D130

b. S150



DS Company has identified the following cost pools and activity rates:

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