ACC217

ACC 217 due tonight

LE ACC217 Number Styles Exercise E4-1 Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide HIKILI overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed machining and machine setup. Presented below is information related to the company's operations. Standard Custom Direct labor costs $50,000 $100,000 Machine hours 1.000 1,000 Setup hours 100 400 $170,000 18. Total estimated overhead costs are $270,000 Overhead cost allocated to the machining activity cost pool is and 100.000 is allocated to the machine setup activity cost pool. Instructions: (a) Compute the overhead rate using the traditional (plantwide) approach. 20 = Predetermined overhead rate Estimated overhead Direct labor costs Sheet2 K Sheet1 Sheet3 25 M Ready Computer Mrs.Lissa Recycle Bin Control Panel P-touch Update Software Mozilla Firefox E-HP Officejet Pro 8620 Libraries Network Control Panel P-touch Editor 50 Shop for Supplies - HP - MySyncUPFiles Desktop DriverUpdate AVG Antivirus FREE Google Chrome Homegroup inspiron style GA (b) Compute the overhead rates using the activity-based costing approach. Activity cost pools Machining Machine se Estimated overhead Cost drivers Machine hours Set up hours Activity-based overhead rates Machining: Machine setup: (C) Determine the difference in allocation between the two approaches. Traditional costin Standard Custom WW Sheet1 Sheeran Libraries 12 Computer Network 1. Mrs.Lissa Control Panel Mozilla Firefox Recycle Bin 8 P-touch Update Software Control Panel E HP Officejet Pro 8620 Driver Update PP-touch Editor 5.0 Desktop Google Chrome Shop for Supplies - HP... AVG AntiVirus FREE Homegroup MySyncUPFiles Inspiron 13 Alignment J ACC217 Number 4A 40 (c) Determine the difference in allocation between the two approaches. 41 42 Traditional costing Standard 43 Custom 45 Standard Custom Activity-based costing Machining: 48 49 51 Machine setup: S . Mis Lissa Computer Recycle Bin 139 Control Panel P-touch Update Software the Network Mozilla Firefox E" HP Officejet Pro 8620 Control Panel Ipdate Home