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A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity
A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity Center Product 2 Estimated Cost Product 1 Machine Setups 15 45 $11,400 Assembly Parts 1,500 1,500 71,700 Packaging Pieces 250 200 27,225 Machine Hours per Unit 4 3 Production Volume 750 1,500 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. Product 1 Product 2 < Allocation per unit $ 58.84 $ 44.13 B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $ All work saved. Previous Next Email Instructor Submit Test for Grading
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