A finished ACC-360 Topic 6 activity-based recosting worksheet example, recharging one plant's overhead through three activity pools to two products and showing per-unit costs before and after. Searches like "acc 360 topic 6 assignment example", "acc360 topic 6 sample" and "acc-360 topic 6 example" land here.
What a finished ACC-360 Topic 6 activity-based recosting worksheet looks like
The finished worksheet starts from the plant's current figures so the change can be measured against them. At $30 per machine hour, bins absorb $540,000 of the illustrative overhead and housings $60,000, which is $4.50 per bin and $6.00 per housing. The worksheet then splits the pool. Machine operation, $300,000, goes on machine hours at $15. Setups, $180,000, go on 60 setups at $3,000 each, and the housings need 40 of them. Inspection, $120,000, goes on 1,500 inspection hours at $80, of which the housings use 1,200. Recharged, bins carry $354,000, or $2.95 a unit, and housings $246,000, or $24.60. The two totals still sum to $600,000, which the worksheet shows in a check row. Each pool carries a short test of whether its driver moves with its cost.
How an ACC-360 Topic 6 example is structured
Three blocks make up the worksheet: a before column, a pool-by-pool build and an after column, so a reader can follow every dollar across. Product data leads: 120,000 bins and 10,000 housings, with machine hours, setups and inspection hours for each. The current single-rate charge is reproduced beneath that. The $600,000 is then divided into three pools, with a note on what each contains and which driver it follows. A rate is computed for each pool and both products are charged, one pool per row. The new charges are totaled, converted to overhead per unit and followed by a check row showing that the pool total is unchanged. Each driver is then tested against a plain question about what makes that cost grow. The worksheet ends by naming the decisions that should now be reopened, without making them.
The current charge reproduced first
Bins at $4.50 and housings at $6.00 per unit are shown before any change, which gives every later figure something fixed to be compared with.
Three pools with their contents named
Machine operation, setups and inspection are each described by the costs inside them, which shows what the $180,000 of setup cost actually pays for.
Rates computed one pool at a time
Fifteen dollars per machine hour, $3,000 per setup and $80 per inspection hour are each derived from a pool total and a driver count shown beside it.
A check row that holds the total
The recharged amounts for bins and housings add back to $600,000, which confirms that activity costing redistributed overhead without creating or losing any.
Each driver given a plain test
The worksheet asks whether a longer production run would need another setup and whether a tighter tolerance would need more inspection, and records both answers.
Decisions reopened, not made
Housing prices and the minimum order size are flagged for review, while the worksheet stops short of recommending either, since that work comes in a later topic.
Where marks go in ACC-360 Topic 6
A worksheet that explains activity pools and drivers but leaves both products at their old costs has shown the vocabulary and not the effect, and it earns little. Pools built without naming their contents cannot be defended, since a reader has no way to judge whether setup cost really follows the number of setups. Worksheets whose recharged totals do not return to $600,000 have made an arithmetic error that undermines every per-unit figure. Choosing units produced as the driver for setups or inspection rebuilds the old volume-based answer under a new name. Papers that report the new total per product line but never convert it to cost per unit leave the reader without the figure a pricing discussion would use. Recommending price changes inside the worksheet, before the costing has been reviewed, runs ahead of the evidence.
Get an ACC-360 Topic 6 example written to your instructions
Send the ACC-360 Topic 6 instructions, the rubric in your classroom and the product and activity data your case supplies. A custom example is drafted to those criteria, with the current charge reproduced, pools named by contents, rates derived, both products recharged with a check row and each driver tested, delivered in 24 to 48 hours. The first one comes free.
ACC-360 Topic 6 questions, answered
Why does the housing's cost rise so sharply?
Because it consumes setups and inspection far out of proportion to its volume. The housings make up under a tenth of the units and need two-thirds of the setups and four-fifths of the inspection hours. A machine-hour rate spread those costs by running time, where the housings use little, so their overhead looked like the bins'. The recharge moves the costs to where the activity actually happened.
How many activity pools are enough?
Enough to capture the activities that products consume in clearly different proportions, and rarely more at this level. Three pools here separate running time, setups and inspection, which is where the two products differ. Splitting further, into material handling or engineering changes, adds work and matters only if those activities also vary sharply between products. The worksheet should say why the pools stop where they do.
Does the total overhead change under activity costing?
No. The plant spends the same $600,000 whichever way it is charged, and the check row exists to prove that. What changes is each product's share, and therefore each product's reported cost. If a recharged total comes out different from the original pool, an error has crept into a rate or a driver count, and it should be found before any per-unit figure is used.