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Edward Manufacturing Company makes two products. In the past, the company allocated overhead based on estimated total direct labor hours of 3 9 , 0
Edward Manufacturing Company makes two products. In the past, the company allocated overhead based on estimated total direct
labor hours of Edward recently implemented an activitybased costing system and had determined that overhead can be
broken into three overhead pools: processed purchase orders, machine setups, and good shipped. The following is a summary of
company information:
a
Your answer is correct.
Calculate the company's overhead rate using a single cost pool. Round answers to decimal places, eg
Overhead rate $
per direct labor hour
eTextbook and Media
b
Calculate the company's overhead rates using the activitybased costing pools. Round Order processed and Machine hour answers to
decimal places, eg and Shipment answer to decimal places, eg
Orders $ per order processed
Setups $ per machine hour
Shipping $ per shipment
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