ADMS 3510 Study Guide - Midterm Guide: Ribston Hall, Quality Control, Deutsche Luft Hansa

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The predetermined overhead rate would be computed as follows: Estimated moh / estimated dlh = 4,400,000/ 3,200 = 1375. 1 dlh produces 50 kilograms so 1 kg requires 0. 02 dlh. Total sales is 160,000 kg so (160,000* 0. 02) 3200 hours are required. (2 marks) give partial marks where the formula is partially correct. The unit product cost per kilogram, using the company"s present costing system, would be: . 74 (2 marks) give partial marks where the answer is partially correct and if they carried forward answer incorrectly from part (a) don"t penalize them again if they used it correctly in this part: overhead rates by activity centre: (a) Before we can determine the amount of overhead cost to assign to the product we must first determine the activity for each of the products in the five activity centres. 160,000 kilograms 20,000 kilograms per order = 8 orders. 160,000 kilograms 10,000 kilograms per batch = 16 batches.

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