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  • Activity Based Costing - Allocating Overhead Costs

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    GolamMostafa
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    Activity based costing is a method for allocating overhead costs to products and services based on the activities consumed during production. The document shows estimated monthly overhead costs totaling $800,000 allocated across labor, machine setups, part administration, production orders, material receipts, and general factory machine hours. It also provides the overhead rate per activity that will be used to apply overhead costs.

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    Activity-Based-Costing-EasyQuick

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    Activity based costing is a method for allocating overhead costs to products and services based on the activities consumed during production. The document shows estimated monthly overhead costs totaling $800,000 allocated across labor, machine setups, part administration, production orders, material receipts, and general factory machine hours. It also provides the overhead rate per activity that will be used to apply overhead costs.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    5 views2 pages

    Activity Based Costing - Allocating Overhead Costs

    Uploaded by

    GolamMostafa
    Activity based costing is a method for allocating overhead costs to products and services based on the activities consumed during production. The document shows estimated monthly overhead costs totaling $800,000 allocated across labor, machine setups, part administration, production orders, material receipts, and general factory machine hours. It also provides the overhead rate per activity that will be used to apply overhead costs.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Activity Based Costing - Allocating Overhead Costs

    Activity Estimated MOH


    Labour Related $80,000.00
    Machine setups $150,000.00
    Part administration $160,000.00
    Production Orders $70,000.00
    Material Receipts $90,000.00
    General factory machine hours $250,000.00
    Total $800,000.00
    Overhead Rate (per
    Total per Activity activity)
    50000 hours $1.60
    5,000 setups $30.00
    80 parts $2,000.00
    400 orders $175.00
    750 receipts $120.00
    40,000 machine hours $6.25

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