Dana Accounting Corporation (DAC), employs activity-based costing (ABC) The following budgeted data for each of the activity cost pools in provided for the year 2019.

 Dana Accounting Corporation (DAC), employs activity-based costing (ABC) The following budgeted data for each of the activity cost pools in provided for the year 2019.

 

Answer

Required No. 1

Solution

Predetermined overhead allocation rate:

Meeting with clients = 5,000,000/100,000 = $50 per client

Preparing accounting files = 5,000,000/50,000 = $100 per accounting files

Reviewing files = 450,000 / 9000 = $50 per hour

 Required No. 2

Solution

Total overhead allocation = ($50 x 80,000) + ($100 x 55,000) + ($50 x 8500)

Total overhead allocation = $9,925,000

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