Manufacturing overhead Selling & admistrative OH Total overhead costs

$300,000 $200,000 $500,000

Anupam trailor's ABC system has the following activity cost pool and activity measure : Activity Cost pool Manufacturing units .. Processing orders Supporting Customers .. others . Activity measure Number of units Number of orders Number of customers Not applicable

Anupum tralior's distributes the cost of manyfacturing overhead and selling and admistrative overhead to the activity cost po the result of which are reported below : Distribution of Consumption Activity Cost Pool Manufacturing units Processing orders Supporting Customers Manufacturing Overhead .. Selling & admistrative OH. Total Activity .. Units 50% 5% 1000 Orders 30% 40% 250

Activity Cost Pools Manufacturing units Processing orders Manufacturing Overhead .. Selling & admistrative OH.. Total cost .. 2. The activity rates for the activity cost pools are : Activity cost Pools Manufacturing units Processing orders Supporting customers Total cost (a) Total Activity (b) Activity Rate (a)/(b) $160 per unit $680 per order $1150 per customer $150,000 $10,000 $160,000 $90,000 $80,000 $170,000

$160,000 1000 units $170,000 250 orders $115,000 100 customers

3. The overhead cost attribytable to "X" shop would be computed as follows : Activity Cost Pools Manufacturing units Processing orders Supporting customers Activity Rate Activity ABC Cost $24,000 $6,800 $1,150 $31,950

$160 per unit 150 units $680 per order 10 orders $1150 per customer 1 customer

istrative overhead to the activity cost pools based on owners inerviews

g orders Supporting Customers 15% 35% 100 Customers

Others 5% 20%

Total 100% 100%

Suppoting customers Others $45,000 $70,000 $115,000

Total

$15,000 $300,000 $40,000 $200,000 $55,000 $500,000