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Boeing identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost driver Activity
Boeing identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost driver Activity level Supervision of direct labor $380,000 Direct labor-hours 7,600 Machine maintenance $120,000 Machine-hours 9,600 Facility rent $200,000 Square feet of area 25,000 Total overhead costs $640,000 Accounting records show that the "Southwest Job\" consumed the following resources: Cost driver Actual level Direct labor-hours 200 Machine-hours 1,600 Square feet of area 500 Answer the following two questions: A) If Boeing uses the three activity cost pools to allocate overhead costs, what are the activity-cost driver rates for supervision of direct labor. machine maintenance, and facility rent, respectively? B) Using the three cost pools to allocate overhead costs, what is the total amount of overhead costs to be allocated to the Southwest Job
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