Comparing ABC and Plantwide Overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment Other overheard $280,000 $7,560,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows: Fudge Cookies Units produced 8,000 445,000 Setup hours 4,000 1,000 Oven hours 7,000 49,000 Required: Round your answers to the nearest whole dollar, unless otherwise directed. 1. Calculate the activity rate for (a) setting up equipment and (b) other overhead.) a. Setting up equipment b. Other overheadi 280,000. per setup hour 7,560,00 per oven hour 2. How much total overhead is assigned to Fudge using ABC? 1,169,000 Previous Next