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chapter 17 q 5.8 A manufacturer uses activity-based costing to assign overhead costs to products. Budgeted cost information for selected activities for next year follows.
chapter 17 q 5.8
A manufacturer uses activity-based costing to assign overhead costs to products. Budgeted cost information for selected activities for next year follows. Activity Purchasing Cleaning factory Providing utilities Expected Cost $120,400 31,000 61,160 Cost Driver Purchase orders Square feet Square feet Expected Usage of Cost Driver 4,300 purchase orders 4,800 square feet 4,800 square feet Compute activity rates for each of the cost pools. (Round your answers to 2 decimal places.) Activity cost pool Expected Costs Activity Overhead Rate Expected Amount of Cost Driver 4,300 Purchasing per purchase order Factory 4,800 per square foot Rafner Manufacturing identified the following budgeted data in its two production departments. Manufacturing overhead costs Direct labor hours Machine hours Assembly $1,237,800 12,400 DLH 6,400 MH Finishing $ 640,000 20,400 DLH 16,400 MH Required: What is the company's assembly department overhead rate using direct labor hours? The departmental overhead rate for Assembly Estimated overhead costs 0 Estimated direct labor hoursStep by Step Solution
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