Business, 22.04.2021 21:10 rcetrangolo
Exercise 17-03 a1-a2, b1-b2 (Video) (Part Level Submission) Marigold has budgeted overhead costs of $973,350. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 463,500 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $370,800 and $602,550 is allocated to the design cost pool. Additional information related to these pools is as follows. Wool Cotton Total Machine hours 103,000 103,000 206,000 Number of setups 1,030 515 1,545 Collapse question part (a1) Calculate the overhead rate using activity based costing.
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Exercise 17-03 a1-a2, b1-b2 (Video) (Part Level Submission) Marigold has budgeted overhead costs of...
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