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Bonita Machining makes three products. The company's annual budget includes $ 1 , 0 4 8 , 0 0 0 of overhead. In the past,
Bonita Machining makes three products. The company's annual budget includes $ of overhead. In the past, the company allocated overhead based on expected capacity of direct labor hours. The company recently implemented an activitybased costing system and has determined that overhead costs can be broken into four overhead pools: order processing, setups, milling, and shipping. The following is a summary of company information: a Calculate the company's traditional overhead rate based on direct labor hours. Overhead rate DLH b Calculate the company's overhead rates for each of the activitybased costing pools. Round answers to decimal places, eg Order processing per order
Bonita Machining makes three products. The company's annual budget includes $ of overhead. In the past, the company allocated overhead based on expected capacity of
direct labor hours. The company recently implemented an activitybased costing system and has determined that overhead costs can be broken into four overhead pools: order processing,
setups, milling, and shipping. The following is a summary of company information:
a Calculate the company's traditional overhead rate based on direct labor hours.
Overhead rate
DLH
b Calculate the company's overhead rates for each of the activitybased costing pools. Round answers to decimal places, eg
Order processing
per order
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