Posted: July 31st, 2016

Determine the total overhead cost that would be assigned ?

DS Company has identified the following cost pools and activity rates:

Activity Cost Pool Activity Rate Supporting direct labor $4 per direct labor hour Machine processing $3 per machine hour Machine setups $30 per setup Production orders per order Shipments $98 per shipment Product sustaining 0 per product Activity data have been supplied for the following products: Total Expected Activity D130 S150 Direct labor hours 2,500 300 Machine hours 4,300 250 Machine Setups 7 2 Production orders 3 2 Shipments 9 4 Products sustaining 2

1 Determine the total overhead cost that would be assigned to each of the products listed above in the activity based costing system: show computations and details

a. D130
b. S150
In 2010, John Co. sold 150,000 units of its product at a price of $40. The variable cost per unit was $24, and John reported net income for the year of $400,000. What was the amount of John’s fixed costs for the year?

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