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Current Attempt in Progress Crane, Inc. produces two types of gas grills: a family model and a deluxe model. Crane's controller has decided to
Current Attempt in Progress Crane, Inc. produces two types of gas grills: a family model and a deluxe model. Crane's controller has decided to use a plantwide overhead rate based on direct labor costs. The president of the company recently heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations: Family Model Deluxe Model Direct labor costs Machine hours Setup hours $75,300 $150,600 2,000 2,000 200 800 Total estimated overhead costs are $451,800. Overhead cost allocated to the machining activity cost pool is $271,080 and $180,720 is allocated to the machine setup activity cost pool. (a) Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 15.25.) Overhead rate MacBook Air
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