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CALORATOR Exercise 4-1 (Video) Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based
CALORATOR Exercise 4-1 (Video) 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 Sosting 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. Custom Direct labor costs Machine hours Setup hours Standard $50,000 1,200 $100,000 1,200 420 120 Total estimated overhead costs are $305,400. Overhead cost allocated to the machining activity cost pool is $192,000, and $113,400 is allocated to the machine setup activity cost pool Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, eg. 12.28.) Predetermined overhead rate % of direct labor cont LINK TO TEXT LINK TO TEXY VIDEO SIILAR HERCISE Compute the overhead rates using the activity-based costing approach Machining per machine hour Machine setup per setup hour VI. SRILAR DERNE LINK TO TEXT LINK TO TEXT Determine the difference in allocation between the two approaches. Traditional costing Standard Custom Activity-based costing Standard Custom Click if you would like to Show Work for this questioni Qen Show
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