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ASAP. Thanks! Gary's company makes and sells scarves, and he has just completed his annual financial analysis for the most recent year-end. The company produces
ASAP. Thanks!
Gary's company makes and sells scarves, and he has just completed his annual financial analysis for the most recent year-end. The company produces two varieties of scarves: Silk and Cotton. Gary used a single plant-wide rate based on Direct Labor (DL) hours this year just as he had for many years prior, but he is not positive that this is the best approach moving forward. Gary has become interested in Activity-Based Costing (ABC). Gary has determined that Manufacturing Overhead (MOH) key activities include: Folding, $20325 (driven by DL hours); Cleaning/Maintenance, $9920 (driven by cleaning/maintenance hours); and Quality inspections, $5100 (driven by number of inspections). He has compiled the following financial data to assist with his evaluation of the costing systems: What is the total amount of MOH allocated to the silk scarves using ABC ? (Do not round interm Wiate calculations.) $19545.51 $20325.00 $21800.00 $16365.00Step by Step Solution
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