Purchase Solution

Activity based costing vs traditional overhead allocation

Not what you're looking for?

Ask Custom Question

Please see attached for problem.

Purchase this Solution

Solution Summary

Provides a comparison between activity based costing and traditional overhead allocation.

Solution Preview

Using activity based accounting we have the cost of Direct Materials $107,200/- add direct labor $196,800 add materials handling cost 70,400 x 0.20 = 14,080 add cutting and lathe work 70,400 x 1.40 = 98,560 and Assembly and inspection cost 70,400 x 20.00 = 1408,000 giving us a grand total of $1647,640/3200 = $514.89 which is the cost per unit.

Taking direct labor hour's basis. As the total number of hours per year is ...

Purchase this Solution

Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.


This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Operations Management

This quiz tests a student's knowledge about Operations Management

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations