Carol is the controller for Stormy Corp., a company that manufactures lightweight jackets. Their most popular product is currently a storm cloud patterned rain jacket. Carol would like management to consider implementing Activity-Based Costing (ABC) so that they can better account for the costs associated with this rain jacket. She has gathered the following information pertaining to the rain jacket:
Allocate Manufacturing Overhead (MOH) costs to the storm cloud patterned rain jacket using the activity-based cost drivers above (If required, round calculations to two decimal places.)
The actual usage of the drivers is as follows:
1,480 supervisor hours
13,600 machine hours
2,850 cleaning hours

Question

Carol is the controller for Stormy Corp., a company that manufactures lightweight jackets. Their most popular product is currently a storm cloud patterned rain jacket. Carol would like management to consider implementing Activity-Based Costing (ABC) so that they can better account for the costs associated with this rain jacket. She has gathered the following information pertaining to the rain jacket:
  Allocate Manufacturing Overhead (MOH) costs to the storm cloud patterned rain jacket using the activity-based cost drivers above (If required, round calculations to two decimal places.)
The actual usage of the drivers is as follows:
1,480 supervisor hours
13,600 machine hours
2,850 cleaning hours

Quizplus · Accepted Answer

The Answer of Carol is the controller for Stormy Corp., a company that manufactures lightweight jackets. Their most popular product is currently a storm cloud patterned rain jacket. Carol would like management to consider implementing Activity-Based Costing (ABC) so that they can better account for the costs associated with this rain jacket. She has gathered the following information pertaining to the rain jacket:
  Allocate Manufacturing Overhead (MOH) costs to the storm cloud patterned rain jacket using the activity-based cost drivers above (If required, round calculations to two decimal places.)
The actual usage of the drivers is as follows:
1,480 supervisor hours
13,600 machine hours
2,850 cleaning hours

Carol Is the Controller for Stormy Corp