Question
16. (6 points) Door Company has two Divisions to produce doors: Standard and Deluxe. The following data was collected for each division: Activity Setups
16. (6 points) Door Company has two Divisions to produce doors: Standard and Deluxe. The following data was collected for each division: Activity Setups Cut & Trim Packing Standard 200 22,500 15,000 Cost Driver Cost 10tcl # of Setups Machine Hours $500,00 $10,500,000 $6,200,000 500 60,000 20,000 # of Shipments a. Calculate the ABC allocation rates for each of the three activities: Set-ups, Cut & Trim and Packing. Deluxe 300 37,500 5,000 b. What are the overhead costs allocated to the Deluxe Division using ABC?
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Statistical Techniques in Business and Economics
Authors: Douglas A. Lind, William G Marchal
17th edition
1259666360, 978-1259666360
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