past exam question

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May 13, 2015 at 5:33 am #245609
mercymike
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Kindly explain to me how they got the cost allocated to order figures- December 2010 question in calculating Activity Based Costing
May 13, 2015 at 7:53 am #245646
Ken Garrett
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Original overhead allocation = 14,190,000/2 +3,800 = 596.22 (ie total oh/units)

ABC = 593·28 + 458·13 + 75·86 + 106.60 = 1,234 (see working in appendix to answer).
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