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Answers for all Exercise 4-1 Saddle Inc. has two types has heard of activity-based costing and wants to see how the results would differ if
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Exercise 4-1 Saddle Inc. has two types has heard of activity-based costing and wants to see how the results would differ if this s machine setup. Presented below is information related to the company's operations. of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president ystem were used. Two activity cost pools were developed: machining and Standard Custom Direct labor costs Machine hours Setup hours 0,000 $119,000 1,280 380 1,390 105 Total estimated overhead costs are $306,000. Overhead cost allocated to the machining activity cost pool is $197,000, and $109,000 is allocated to the machine setup activity cost pool. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate % of direct labor cost VIDEO SIMILAR EXERCISE Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, e.g. 12.25.) Machining Machine setup per machine hour per setup hour Step by Step Solution
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