Shalom Company uses three activity pools to apply overhead to its products. Each activity has acost driver used to allocate the overhead costs to the product. The activities and related overheadcosts are as follows: product design P40,000; machining P300,000; and material handlingP100,000. The cost drivers and estimated use are as follows:Activity Cost PoolsActivitiesProduct designNumber of product changesMachiningMachine hoursMaterial handlingNumber of set-upsXEstimated Use of Cost DriverPer ActivityAmounts must be in whole numbers. Example: 88,000 or (88,000)Unit costs be in whole numbers. Example: 88Format of percentages: 88%Words must be in capital letters.10150,000100What is the activity-based overhead rate for material handling?J

Activity Rate :— It is the rate used to allocate overhead cost to cost object under activity based…

□ Shalom Company uses three activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows: product design P40,000; machining P300,000; and material handling P100,000. The cost drivers and estimated use are as follows: Activity Cost Pools Activities Number of product changes Machine hours Number of set-ups X Product design Machining Material handling Estimated Use of Cost Driver Per Activity Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 10 150,000 100 Format of percentages: 88% Words must be in capital letters. What is the activity-based overhead rate for material handling?

□ Shalom Company uses three activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows: product design P40,000; machining P300,000; and material handling P100,000. The cost drivers and estimated use are as follows: Activity Cost Pools Activities Number of product changes Machine hours Number of set-ups X Product design Machining Material handling Estimated Use of Cost Driver Per Activity Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 10 150,000 100 Format of percentages: 88% Words must be in capital letters. What is the activity-based overhead rate for material handling?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 30P: Primera Company produces two products and uses a predetermined overhead rate to apply overhead....

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