Question
A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated ActivityActivity CenterProduct 1Product
A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing:
Estimated ActivityActivity CenterProduct 1Product 2Estimated CostMachine Setups1545$9,600Assembly Parts3,0003,000143,400Packaging Pieces50040055,800Machine Hours per Unit43Production Volume7501,500
A.How much overhead would be allocated to each unit under the traditional allocation method?Round your answers to two decimal places.
Product 1Product 2Allocation per unit$fill in the blank 1
$fill in the blank 2
B.How much overhead would be allocated to each unit under activity-based costing?Round your answers to two decimal places.
Product 1Product 2Allocation per unit$fill in the blank 3
$fill in the blank 4
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Bank Performance, Risk And Firm Financing
Authors: P. Molyneux
1st Edition
0230313353, 9780230313354
