Business, 27.05.2020 12:57 eweqwee3147

Isadore’s Implements, Inc., manufactures pens and mechanical pencils often used for gifts. Overhead costs are currently allocated using direct labor-hours, but the controller has recommended an activity-based costing system using the following data: Cost Driver Volume Activity Cost Driver Cost Pencils Pens Setting up Number of setups $ 90,000 22 28 Inspecting Number of parts 27,900 3 6 Packing and shipping Number of boxes shipped 48,000 45,000 75,000 Total overhead $ 165,900 Required: a. Compute the amount of overhead to be allocated to each product under activity-based costing. (Do not round intermediate calculations.)

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Isadore’s Implements, Inc., manufactures pens and mechanical pencils often used for gifts. Overhead...