Alliance Company manufactures two products (brushes and combs). The overhead costs

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Alliance Company manufactures two products (brushes and combs). The overhead costs have been divided into four cost pools that use the following activity drivers.

 

 

# of Setups

# of Orders

Machine Hours

Packing Orders

Brushes

30

35

2,000

100

Combs

10

65

6,000

150

Cost per Pool

$20,000

$10,000

$280,000

$60,000

 

 

 

 

 

 

Required

  1. Compute the allocation rates for each of the activity drivers listed.
  2. Allocate the overhead costs to Products S and T using activity-based costing.
  3. Compute the overhead rate using machine hours under the functional-based costing system.
  4. Allocate the overhead costs to Products S and T using the functional-based costing system overhead rate calculated in part (c).
    • 13 years ago
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