Question
A running shoe manufacturer produces three types of shoes: traditional, minimalist, and spikes. The company uses the following information to determine activity rates for each
A running shoe manufacturer produces three types of shoes: traditional, minimalist, and spikes. The company uses the following information to determine activity rates for each pool: Cost Pool Costs Cost Driver Shoe Production $250,000 Pairs of Shoes Shoe batches $10,000 Batches Shoe design $5,000 Parts Total $265,000 Data concerning the three shoe products appear below: Cost Driver Traditional Minimalist Spikes Number of pairs of shoes 20,000 15,000 5,000 Number of parts 50 70 80
What is the total amount of overhead applied to Minimalist shoes? Before calculating the total overhead, how do I determine activity rates for each pool:
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