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EcoFabrics has budgeted overhead costs of $ 1.039.500. t hasallocated overhead on a plantwide basis to itstwo produ ng direct labor hours which are estimated
EcoFabrics has budgeted overhead costs of $ 1.039.500. t hasallocated overhead on a plantwide basis to itstwo produ ng direct labor hours which are estimated to be 495,000 for the current year. The company has decided ed activity cost drivers. These two to experiment with activity-based costing and has created two activity cost pools and relat cost pools are cutti cutting cost pool is $ 396,000 and $ 643,500 is allocated to the design cost pool. Additional information related to these pools ing (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the is as follows. Wool Cotton Total 110,000 110,000 220,000 Machine hours 1,100 550 1,650 Number of setups Calculate the overhead rate using activity based costing. (Round answers to 2 decimal places, eg. 12.25) Overhead rates for activity-based costing Cutting Design per machine hour per setup
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