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8 Exercise 6-50 (Algo) Two-Stage Cost Allocation and Predetermined Rates (LO 6-1, 2, 3) 8.33 points Tacoma Accessories makes two laptop cases, Plastic and
8 Exercise 6-50 (Algo) Two-Stage Cost Allocation and Predetermined Rates (LO 6-1, 2, 3) 8.33 points Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter: eBook Revenue Direct material Print Direct labor Overhead: References Material handling overhead Fabrication overhead Plastic Leather Total $ 620,000 320,000 200,000 $ 640,000 $ 1,260,000 400,000 180,000 720,000 380,000 237,600 402,800 Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct-labor costs to allocate fabrication overhead costs. Required: a. Compute the material handling overhead rate for next quarter. b. Compute the fabrication overhead rate for next quarter. c. What is the total overhead allocated to the Plastic case next quarter? d. What is the total overhead allocated to the Leather case next quarter? Check my we t Material handling overhead Fabrication overhead 402,800 Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and dire costs to allocate fabrication overhead costs. Required: a. Compute the material handling overhead rate for next quarter. b. Compute the fabrication overhead rate for next quarter. c. What is the total overhead allocated to the Plastic case next quarter? d. What is the total overhead allocated to the Leather case next quarter? ences a Material handling predetermined rate b. Fabrication predetermined rate c. Total overhead (Plastic) d Total overhead (Leather) % of direct-materials cost % of direct-labor cost
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