Huish Awnings Makes Custom Awnings for Homes and Businesses Distribution of Resource Consumption
Huish Awnings makes custom awnings for homes and businesses.The company uses an activity-based costing system for its overhead costs.The company has provided the following data concerning its annual overhead costs and its activity cost pools:
Overhead Costs:
Distribution of resource consumption:
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.The amount of activity for the year is as follows:
Required:
a)Prepare the first-stage allocation of overhead costs to the activity cost pools by filling in the table below:
b)Compute the activity rates (i.e.,cost per unit of activity)for the Making Awnings and Job Support activity cost pools by filling in the table below:
c)Prepare a report in good form of a job that involves making 80 yards of awnings and has direct materials and direct labour cost of $3,000.The sales revenue from this job is $4,000.
Correct Answer:
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