Overhead Activities Assignment
CONCEPT by using overhead rates based on assignments is more accurate than those using 2Exercise 5-49 Product-Costing Accuracy, Consumption Ratios, Activity Rates, Activity Costing Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have been identified: machining, setups, receiving and packing. Resource drivers have been used to assign costs to each activity.
The overhead activities, their costs, and the other related data a follows: хСEL areas Packing Orders Receiving Orders 900 Setups Machine Hours Product 1,600 Infantry Special forces 300 20,000 100 800 20,000 100 $30,000 $18,000 $24,000 Costs $80,000 Required: 1. Calculate the total overhead assigned to each product by using only machine hours to calculate a plantwide rate. 2. Calculate consumption ratios for each activity. (Round to two decimal places.) 3. Calculate a rate for each activity by using the associated driver. (Round to two decimal places.) 4. Assign the overhead costs to each product by using the activity rates computed in Requirement 3. 5. CONCEPTUAL CONNECTION Comment on the difference between the assignment in Requirement 1 and the activity-based assignment Overhead assignment: 34 Special 35 4. Infantry Forces Hours, Setups or Orders Rate Machining: Infantry Special forces Setups: Infantry Special forces Receiving Infantry Special forces Packing: Infantry Special forces Total 30 36 37 38 39 40 52 5. [Key essay answer here] .
