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compute the activity based overhead rates for the cost pools and compute the overhead cost assigned to each product HI Company manufactures two products: Product
compute the activity based overhead rates for the cost pools and compute the overhead cost assigned to each product
HI Company manufactures two products: "Product A" and "Product B" The expected annual manufacturing overhead is $1,200,000. The company's managers identified three-activity cost pools and related cost drivers and accumulated overhead by cost pools as follows: Activity Estimated Overhead Cost driver Expected use of cost drivers by product Expected use of cost drivers cost pool Product A Product B Setting up machines Number of Setups $500,000 200,000 setups 120,000 80,000 Direct Labor Assembling 600,000 300,000 DL hours 180,000 120,000 Hours Number of Inspection 100,000 40,000 inspections 25,000 15,000 InspectionsStep by Step Solution
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