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Carole makes two types of bowties: polyester (poly) and silk. There are two cost pools: setups (with an estimated 120,000 in overhead - OH)
Carole makes two types of bowties: polyester (poly) and silk. There are two cost pools: setups (with an estimated 120,000 in overhead - OH) and inspections (with an estimated 30,000 in overhead- OH). Using the data below, compute the amount of OH that should be applied to each product: OH Rate Per Activity Estimated Activity Total (Poly) Estimated Activity Total OH OH Applied to Poly OH Applied to Silk (Silk) Setup 800,000 400,000 Inspection 450,000 150,000 TOTAL 102,500 47,500
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