PMA Inc. Data Manufacturing overhead $500,000 Selling and administrative overhead $300,000 Assemblin

PMA
Inc.

Data

Manufacturing overhead
$500,000

Selling and administrative
overhead
$300,000

Assembling Units
Processing Orders
Supporting Customers
Other

Manufacturing overhead
50%
35%
5%
10%

Selling and administrative
overhead
10%
45%
25%
20%

Total activity
1,000
250
100

units
orders
customers

PMA orders:

Customers
1
customer

Orders
4
orders

Number of alternators ordered
in total
80
units

Selling price
$595

Direct materials
$180

Direct labor
$50

Enter
a formula into each of the cells marked with a ? below

Review Problem:
Activity-Based Costing

Perform the first stage
allocations

Assembling Units
Processing Orders
Supporting Customers
Other
Total

Manufacturing overhead
$ 250,000
$ 175,000
$ 25,000
$ 50,000
$ 500,000

Selling and administrative
overhead
30,000
135,000
75,000
60,000
300,000

Total cost
$
280,000
$
310,000
$
100,000
$ 110,000
$
800,000

Compute the activity rates

Activity Cost Pools
Total Cost
Total Activity
Activity Rate

Assembling units
?
?
units
?
per unit

Processing orders
?
?
orders
?
per order

Supporting customers
?
?
customers
?
per customer

Compute
the overhead cost attributable to the OfficeMart orders

Activity Cost Pools
Activity Rate
Activity
ABC Cost

Assembling units
?
per unit
?
units
?

Processing orders
?
per order
?
orders
?

Supporting customers
?
per customer
?
customer
?

Determine the
customer margin for the OfficeMart orders under Activity-Based Costing

Sales

?

Costs:

Direct materials
?

Direct labor
?

Unit-related overhead
?

Order-related overhead
?

Customer-related overhead
?
?

Customer margin

?

Determine the
product margin for the OfficeMart orders under a traditional cost system

Manufacturing overhead
?

Total activity
?
units

Manufacturing overhead per
unit
?
per unit

Sales

?

Costs:

Direct materials
?

Direct labor
?

Manufacturing overhead
?
?

Traditional costing product
margin

?

"Is this question part of your assignment? We can help"

ORDER NOW

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *