Bombast Industries identified the following budgeted overhead activities and drivers: a. Calculate a unit-based overhead rate using machine hours.
b. What is the total cost of Job 786 using the above rate?
c. Calculate three activity-based overhead rates.
d. What is the cost of Job 786 using the above three activity rates?
e. Which method of overhead application (activity-based rates or budgeted factory overhead rate) is more accurate?

Question

Bombast Industries identified the following budgeted overhead activities and drivers:  a. Calculate a unit-based overhead rate using machine hours.
b. What is the total cost of Job 786 using the above rate?
c. Calculate three activity-based overhead rates.
d. What is the cost of Job 786 using the above three activity rates?
e. Which method of overhead application (activity-based rates or budgeted factory overhead rate) is more accurate?

Quizplus · Accepted Answer

The Answer of Bombast Industries identified the following budgeted overhead activities and drivers:  a. Calculate a unit-based overhead rate using machine hours.
b. What is the total cost of Job 786 using the above rate?
c. Calculate three activity-based overhead rates.
d. What is the cost of Job 786 using the above three activity rates?
e. Which method of overhead application (activity-based rates or budgeted factory overhead rate) is more accurate?

Bombast Industries Identified the Following Budgeted Overhead Activities and Drivers