Fischer Company Identified the Following Activities,costs,and Activity Drivers ACompute a Plantwide Overhead Rate Assuming the Company Assigns Overhead

question 38

Essay

Fischer Company identified the following activities,costs,and activity drivers:
$$\begin{array} { | l | c | c | } \hline \text { Activity } & \text { Expected Costs } & \text { Expected Activity } \\\hline \text { Handling parts } & \$ 425,000 & 25,000 \text { parts in stock } \\\hline \text { Inspecting product } & \$ 390,000 & 940 \text { batches } \\\hline \text { Processing purchase orders } & \$ 220,000 & 440 \text { orders } \\\hline \text { Designing packaging } & \$ 230,000 & 5 \text { models } \\\hline\end{array}$$
a.Compute a plantwide overhead rate assuming the company assigns overhead based on 70,000 budgeted direct labor hours (Round to two decimals).
b.Compute separate rates for each of the four activities using the activity based costing.

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