Problem established 2

 Essay regarding Problem arranged 2

Other information:

Setup costs fluctuate with the range of batches highly processed in every department. The budgeted range of batches for every product line in each department is as follows:


Creating department40116

Set up department43103

Oversight costs vary with immediate labor costs in every department.

1 . Estimate the budgeted cost of trophies and plaques based on an individual plant-wide cost to do business rate, in the event total cost to do business is given based on total direct costs.

2 . Determine the budgeted cost of trophies and plaques based on section overhead rates, where forming department expenses are allocated based on immediate labor costs of the developing department, and assembly section overhead costs happen to be

allocated based on total direct costs of the assemblage department. several. Calculate the budgeted cost of trophies and plaques in the event Tarquin allotted overhead costs in each division using activity-based costing. some. Explain how the disaggregation info could improve or lessen decision top quality.

Problem Electronic


Over head rate =Total overhead 56, 346 0. 71211374471. 211%

Total Direct costs $79, 125

Tarquin's Trophies

Budgeted Information

For the entire year Ended The fall of 30, 2011

Forming DepartmentTrophiesPlaquesTotal

Direct supplies $13, 500 $11, 250 $24, 250

Immediate labor 12-15, 600 9, 000 twenty four, 600

Overhead Costs

Setup 12, 1000

Direction 10, 386

Allocated overhead 20, 366 18, 420

Assembly DepartmentTrophiesPlaquesTotal

Direct components $2, six-hundred $9, 375 $11, 975

Immediate labor several, 800 12, 500 18, 300

Overhead Costs

Setup 23, 1000

Guidance 10, 960

Allocated overhead several, 406 16, 153

Recap of total costsTrophiesPlaquesTotal

Direct supplies $15, 600 $20, 625 $36, 240

Immediate labor twenty three, 400 19, 500 $42, 900

Overhead Costs twenty-seven, 772 twenty-eight, 574 $56, 346


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