Exam 1 chp 5 more Flashcards
determine cost driver for product design
design hours
determine cost driver for sawing
machine hours
determine cost driver for sanding
direct labour hours
determine cost driver for superviors salary
direct labour hours
determine cost driver for depreciation on finishing equipment
Machine hours
determine cost driver for administration
number for employees
determine cost driver for advertising and marketing
sales revenue
determine cost driver for storage
square footage of storage used
determine cost driver for shipping
number of products shipped
determine cost driver for machine setup
setups
determine cost driver for order and receving
number of purchase orders
determine cost driver for packaging and shipping
number for boxes
determine cost driver for engineering design
engineer hours
determine cost driver for machining
machine hours
determine cost driver for assembly
number of assemblies
determine cost driver for human resources
number of employees
determine cost driver for security
number of square meters
determine cost driver for receving
number for shipments received
determine cost driver for data processing
number of employee hours worked on data entry
Two of the activity cost pools for Calgary Company are (a) machining ($150,000) and (b) inspections ($80,000). Possible cost drivers are direct labour hours (7,000), machine hours (7,500), square footage (10,000), and number of inspections (80).
Instructions
Calculate the overhead rate for each activity.
(a) Machining: —————————— = $20 per machine hour
7,500 machine hours
$80,000 (b) Inspections: ———————- = $1,000 per inspection 80 inspections
