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( Click the icon to view the information. ) Select the formula, and then enter the amounts to compute the indirect cost per unit for
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Select the formula, and then enter the amounts to compute the indirect cost per unit for each product. Abbreviation used: mfg manufacturing. Round dollar amounts to two decimal places.
Requirement Compute the predetermined overhead allocation rate for each activity.
Begin by selecting the formula to allocate overhead costs.
Allocated mfg overhead costs
Requirement Compare the indirect activitybased costs per unit to the indirect costs per unit from the traditional system. How have the unit costs changed? Explain why the costs changed.
Relative to activitybased costing ABC the traditional system
the commercial containers and
the travel packs.
The traditional system allocates overhead costs solely on
machine hours per unit than travel packs, they
the same proportion of material handling and quality assurance.
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