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Bonita, Inc. produces two types of gas grills: a family model and a deluxe model. Bonita's controller has decided to use a plantwide overhead rate
Bonita, Inc. produces two types of gas grills: a family model and a deluxe model. Bonita's controller has decided to use a plantwide overhead rate based on direct labor costs. The president of the company recently heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations: Total estimated overhead costs are $435,600. Overhead cost allocated to the machining activity cost pool is $261,360 and $174,240 is allocated to the machine setup activity cost pool. Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, eg. 15.25.)
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