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1.What the Overhead per unit for Silver, using ABC? 2.What the Overhead per unit for Gold, using Traditional? PB11. LO 6.4 Lampierre makes silver and
1.What the Overhead per unit for Silver, using ABC?
2.What the Overhead per unit for Gold, using Traditional?
PB11. LO 6.4 Lampierre makes silver and gold candlesticks. The company computed this information to decide whether to switch from the traditional allocation method to ABC. Gold 250 Silver 500 250 5,600 500 Units planned Material moves Machine setups Direct labor hours 750 4,400 1,500 The estimated overhead for the material cost pool is estimated as $45,000, and the estimate for the machine setup pool is $55,000. Calculate the allocation rate per unit of silver and per unit of gold using: A. The traditional allocation method B. The activity-based costing method
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