Ingham Draperies Makes Custom Draperies for Homes and Businesses

question 4

Essay

Ingham Draperies makes custom draperies 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. 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: Required:
a.Prepare the first-stage allocation of overhead costs to the activity cost pools by filling in the table below: b.Compute the activity rates (i.e. ,cost per unit of activity) for the Making Drapes and Job Support activity cost pools by filling in the table below: c.Prepare an action analysis report in good form of a job that involves making 67 yards of drapes and has direct materials and direct labor cost of $2,030.The sales revenue from this job is $6,600.
For purposes of this action analysis report,direct materials and direct labor should be classified as a Green cost;production overhead as a Red cost;and office expense as a Yellow cost.

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Definitions:

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment, widespread poverty, and deflation.

Prohibition

A period in American history, specifically from 1920 to 1933, during which the manufacture, sale, and transportation of alcoholic beverages was legally prohibited.

Noble Experiment

A term that refers to the period of prohibition in the United States during the 1920s and early 1930s intended to reduce crime and corruption, improve health, and improve social morals.