Business, 06.05.2020 07:03 genaro19

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:
Production overhead $150,000
Office expense 100,000
Total $250,000

Distribution of resource consumption:

Activity Cost Pools
Making Awnings Job Support Other Total
Production overhead 45% 40% 15% 100%
Office expenses 8% 65% 27% 100%

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:

Activity Cost Pool Annual Activity
Making awnings 5,000 metres
Job support 200 jobs
Other Not applicable

Prepare the first-stage allocation of overhead costs to the activity cost pools

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Huish Awnings makes custom awnings for homes and businesses. The company uses an activity-based cost...

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