Assume that manufacturing overhead for Windsor Company in the previous exercise consisted of the following activities and
Question:
Assume that manufacturing overhead for Windsor Company in the previous exercise consisted of the following activities and costs:
The following additional data were provided for Job 845:
Required
a. Calculate the cost per unit of activity driver for each activity cost category.
b. Calculate the cost of Job 845 using ABC to assign the overhead costs.
c. Calculate the cost of Job 845 using the plantwide overhead rate based on machine hours calculated in the previous exercise.
d. Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling Department and a direct labor hour overhead rate for the Finishing Department (see E6-20).
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