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Timeless Timepieces produces and sells watches. The following data are available for various
activies within the company:
Calculate the overhead rates for each of the three activities
Activity Allocation Base Number of Activities Overhead Cost
Unpacking Number of boxes unpacked 10000 $40,000
Inspecting Number of batches inspected 1800 $36,000
Packing Number of watches packed 56000 $28,000
Solution
Overhead rate :
Unpacking : 40000/10000 = $ 4 per Box
inspecting : 36000/1800 = $ 20 per batch
Packing : 28000/56000 = $ 0.5 per watch
Thanks :)

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Timeless Timepieces produces and sells watches- The following data are.docx

  • 1. Timeless Timepieces produces and sells watches. The following data are available for various activies within the company: Calculate the overhead rates for each of the three activities Activity Allocation Base Number of Activities Overhead Cost Unpacking Number of boxes unpacked 10000 $40,000 Inspecting Number of batches inspected 1800 $36,000 Packing Number of watches packed 56000 $28,000 Solution Overhead rate : Unpacking : 40000/10000 = $ 4 per Box inspecting : 36000/1800 = $ 20 per batch Packing : 28000/56000 = $ 0.5 per watch Thanks :)