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(c) Determine the difference in allocation between the two approaches. (Round answers to 0 decimal places, e.g. 1,225.) Traditional costing Standard S Custom Activity-based costing
(c) Determine the difference in allocation between the two approaches. (Round answers to 0 decimal places, e.g. 1,225.) Traditional costing Standard S Custom Activity-based costing Standard Custom Click if you would like to Show Work for this question: Open Show Work Exercise 17-1 (Part Level Submission) Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwidde overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the resuts 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 Standard Custom Direct labor costs $52,000 $120,000 Machine hours 1,170 99 1,100 Setup hours 420 Total estimated overhead costs are $301,000. Overhead cost allocated to the machining activity cost pool is $197,000, and $104,000 Iis allocated to the machine setup activity co0st pool
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