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Activity Based Costing Use the following information to answer the following three questions. Canon Corporation has a significant level of manufacturing overhead and adopted the
Activity Based Costing Use the following information to answer the following three questions. Canon Corporation has a significant level of manufacturing overhead and adopted the ABC system. The manapemeri overhead to be $150,000. The detalled breakdown of manufacturing overhead costs along with the cost driver for each ovitheid cost pool is thown belowr The company is considering accepting a significant production contract. Details for the contract are as follows: Direct materials :$30,000 Direct labor (1,000 hours) :$15,000 Number of machine hours: 1.000 Number of setups: 10 Number of inspections : 5 3 point What amount of overhead would be allocated to the contract if a plantwide predetermined overhead rate based on machine hours were used? $4,000 $5,500 57,500 $150 28 3 points What is the activity rate for maintenance activity pool? S4/machine hour $2 setup \$3.inspection $8/ setup 29 3 points How much overhead should be allocated to the contract based on Activity-Based Costing? 53,000 54,150 54,950 55,000
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