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EcoFabrics has budgeted overhead costs of $ 9 8 2 , 8 0 0 . It has assigned overhead on a plantwide basis to its
EcoFabrics has budgeted overhead costs of $ It has assigned overhead on a plantwide basis to its two products wool and cotton using direct labor hours which are estimated to be for the current year. The company has decided to experiment with activitybased costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting cost driver is machine hours and design cost driver is number of setups Total estimated machine hours is and total estimated number of setups is Overhead allocated to the cutting cost pool is $ and $ is allocated to the design cost pool. Additional information related to product usage by these pools is as follows. Calculate the overhead rate using activity based costing. Round per machine hour to decimal places, eg Overhead rates for activitybased costing Cutting $ per machine hour Design $ per setup eTextbook and Media Determine the amount of overhead assigned to the wool product line and the cotton product line using activitybased costing. Wool product line Overhead Allocated Cotton product line $ eTextbook and Media Calculate the overhead rate using traditional approach. Round answer to decimal places, eg Overhead rates using the traditional approach $ per direct labor hour eTextbook and Media What amount of overhead would be assigned to the wool and cotton product lines using the traditional approach, assuming direct labor hours were incurred evenly between the wool and cotton? Wool product line Cotton product line
EcoFabrics has budgeted overhead costs of $ It has assigned overhead on a plantwide basis to its two products wool and
cotton using direct labor hours which are estimated to be for the current year. The company has decided to experiment with
activitybased costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting cost
driver is machine hours and design cost driver is number of setups Total estimated machine hours is and total estimated
number of setups is Overhead allocated to the cutting cost pool is $ and $ is allocated to the design cost pool.
Additional information related to product usage by these pools is as follows.
Calculate the overhead rate using activity based costing. Round per machine hour to decimal places, eg
Overhead rates for activitybased costing
Cutting $ per machine hour
Design $ per setup
eTextbook and Media
Determine the amount of overhead assigned to the wool product line and the cotton product line using activitybased costing.
Wool product line
Overhead Allocated
Cotton product line
$
eTextbook and Media
Calculate the overhead rate using traditional approach. Round answer to decimal places, eg
Overhead rates using the traditional approach $ per direct labor hour
eTextbook and Media
What amount of overhead would be assigned to the wool and cotton product lines using the traditional approach, assuming direct
labor hours were incurred evenly between the wool and cotton?
Wool product line
Cotton product line
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