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CALCULATOR PRINTER VERSION BACK NEXT Exercise 17-01 (Part Level Submission) Saddle Inc. has two types of handbags: standard and custom. The controller has decided
CALCULATOR PRINTER VERSION BACK NEXT Exercise 17-01 (Part Level Submission) Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has 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. Direct labor costs Machine hours Standard Custom $50,000 1.200 90 $100,000 1,200 390 Setup hours Total estimated overhead costs are $292,800. Overhead cost allocated to the machining activity cost pool is $192,000, and $100,000 is allocated to the machine setup activity cost pool. (1) Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, eg. 12.25.) Predetermined overhead rate 195.20% of direct labor cost Click if you would like to Show Work for this question: Open Show Work O SOLUTION LINK TO VIDEO 12:00 PM 1/2/201
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