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6 Comparing ABC and Plantwide Overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting
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Comparing ABC and Plantwide Overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows: Required: Round your answers to the nearest whole dollar, unless otherwise directed. 1. Calculate the activity rate for (a) setting up equipment and (b) other overhead. a. Setting up equipment per setup hour b. Other overhead per oven hour 5. How much total overhead is assigned to Fudge using the plantwide overhead rate? $ 6a. The difference in the total overhead assigned to Fudge is different under the ABC system and non-ABC system because 6b. What is the difference in total overhead assigned to fudge under the two methodsStep by Step Solution
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