Tusker Corporation manufactures two products (S and T). The overhead costs have been divided into four cost pools that use the following activity drivers:

a. Compute the allocation rates for each of the activity drivers listed.
b. Allocate the overhead costs to Products S and T using activity-based costing.
c. Compute the overhead rate using machine hours under the functional-based costing system.
d. Allocate the overhead costs to Products S and T using the functional-based costing system overhead rate calculated in part (c).

Question

Tusker Corporation manufactures two products (S and T). The overhead costs have been divided into four cost pools that use the following activity drivers:
  
a. Compute the allocation rates for each of the activity drivers listed.
b. Allocate the overhead costs to Products S and T using activity-based costing.
c. Compute the overhead rate using machine hours under the functional-based costing system.
d. Allocate the overhead costs to Products S and T using the functional-based costing system overhead rate calculated in part (c).

Quizplus · Accepted Answer

The Answer of Tusker Corporation manufactures two products (S and T). The overhead costs have been divided into four cost pools that use the following activity drivers:
  
a. Compute the allocation rates for each of the activity drivers listed.
b. Allocate the overhead costs to Products S and T using activity-based costing.
c. Compute the overhead rate using machine hours under the functional-based costing system.
d. Allocate the overhead costs to Products S and T using the functional-based costing system overhead rate calculated in part (c).

Tusker Corporation Manufactures Two Products (S and T)