Assume that Kent Manufacturing has two categories of overhead: material handling and quality inspection.The costs expected for these categories for the coming year are as follows:

The plant currently applies overhead using direct labor hours and expected actual capacity.This figure is 50,000 direct labor hours.
Carla Wells,the plant manager,has been asked to submit a bid and has assembled the following data on the proposed job:

Carla has been told that many companies use an activity-based approach to assign overhead to jobs.Before submitting her bid,she wants to assess the effects of this alternative approach.
REQUIRED:

Question

Assume that Kent Manufacturing has two categories of overhead: material handling and quality inspection.The costs expected for these categories for the coming year are as follows:
  
The plant currently applies overhead using direct labor hours and expected actual capacity.This figure is 50,000 direct labor hours.
Carla Wells,the plant manager,has been asked to submit a bid and has assembled the following data on the proposed job:
  
Carla has been told that many companies use an activity-based approach to assign overhead to jobs.Before submitting her bid,she wants to assess the effects of this alternative approach.
REQUIRED:

Quizplus · Accepted Answer

The Answer of Assume that Kent Manufacturing has two categories of overhead: material handling and quality inspection.The costs expected for these categories for the coming year are as follows:
  
The plant currently applies overhead using direct labor hours and expected actual capacity.This figure is 50,000 direct labor hours.
Carla Wells,the plant manager,has been asked to submit a bid and has assembled the following data on the proposed job:
  
Carla has been told that many companies use an activity-based approach to assign overhead to jobs.Before submitting her bid,she wants to assess the effects of this alternative approach.
REQUIRED:

Assume That Kent Manufacturing Has Two Categories of Overhead: Material