Q19-20RQ What is the purpose of quality m… [FREE SOLUTION] | StudySmarter

Question: Newton Company has analyzed its production process and identified two primary activities. These activities, their allocation bases, and their estimated costs are listed below.

Activity

Allocation Base

Estimated Activity

Estimated Costs

Purchasing

Number of purchase orders

200 purchase orders

$ 10,000

Materials Handling

Number of parts

15,000 parts

$ 7,500

The company manufactures two products: Regular and Super. The products use the following resources in March:

Regular Super

Number of purchase orders 5 purchase orders 7 purchase orders

Number of parts 600 parts 750 parts

5. Compute the predetermined overhead allocation rates using activity-based costing.

6. Determine the amount of overhead allocated to Regular products in March.

7. Determine the amount of overhead allocated to Super products in March.