Question
Ben's Asphalt Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: For some reason
Ben's Asphalt Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: For some reason the images arent uploading correctly..
4.1
Activity Cost Pool, Estimated Overhead Cost, Expected Activity,
Labor-related $16,400- 10,000 direct labor-hours
Machine-related $5,000- 10,000 machine-hours
Machine setups $20,500 -500 setups
Production orders $19,000- 500 orders
Product testing $21,700- 700tests
Packaging $36,000- 3,600 packages
General factory $53,600 -10,000 direct labor-hours
Required 1. Please explain how I can compute the activity rate for each activity cost pool.
Required 2. Please explain how I can compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours.(Round your answer to 2 decimal places.)
If the image isn't uploading correctly, I have provided a link to the image. Than you in advanced!
https://ibb.co/MRHdhGq
https://ibb.co/M8KRf3F
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