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Solution: Assembling Units Processing Orders Supporting Customers Other Total Overhead Costs 800000
Solution: Assembling Units Processing Orders Supporting Customers Other Total Overhead Costs 800000
500000
Distribution of resource Consumption Across activity cost pools Assembling Units Manufacturing Overhead Selling & adminstrative expense Total Activitity 50% Processing orders 35% Supporting customers 5% Other
300000 800000
10%
20%
Solution
Activity Cost Pool
0 Manufacturing Overhead Selling & adminstrative expense Total Activitity(Dollar s) Assembling Units 250000 30000 Processing orders 175000 135000 Supporting customers 25000 75000 Other 50000 60000
280000
310000
100000
110000
Costs
$ $ $ $ $
100%
100%
800000
Driver & Guard Wages Vehicle Operating exp Vehicle depreciation Customer rep Salary & exp Office Exp Administrative exp Total Overhead Costs
720000 Driver & Guard Wages Vehicle Operating exp Vehicle depreciati on Customer Office Exp Administr ative exp
Travel
280000
50%
120000
70%
5%
0%
60% 0% 0% 0%
15% 0% 20% 5%
Solution
Travel Driver & Guard Wages Vehicle Operating exp Vehicle depreciati on Customer rep Salary & exp Office Exp Administr ative exp Pick up & delivery Customer Service
360000
252000
72000
196000
14000
72000
18000
0 0
0 6000
144000 9000
16000
192000
Other
Total
5%
100%
25%
100%
Other
Total
36000
720000
70000
280000
30000
120000
16000 15000
160000 30000
112000
320000 1630000
Activity Cost Pool Caring for lawn Caring for garden beds - low maaintenance Caring for garden beds - high maaintenance Travel to jobs Customer billing & service
sqft 2.76 sqft miles Customers 0.26 350 $/Sqft $/miles $/customer