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Exercise 17-01- (Video) Swity Inc. has two types of handbags: standard and custom. The controller has deded to use a plantwide overhead rate based on
Exercise 17-01- (Video) Swity Inc. has two types of handbags: standard and custom. The controller has deded to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based company's operations costing and wants to see how the results would differ if the system were used. Two activity cost pools were developed machining and machine setup. Presented below is Information related to the Standard Custom Direct labor costs $50,000 $100,000 Machine hun 1,200 1.200 Setup hours 120 390 Total estimated overhead costs $299,100 Overhead cost allocated to the machining activity cout pool is $199,000, and $107,100 is allocated to the machine setup activity cost pool Compute the everneed rate using the traditional Courtw.de) approach (Round answer to decimal place, ... 12.28.) Predetermined overhead vote of direct labor cost LETTEN VIDEO IRILARININ Comote the overdressing the activity based on approach Machining per machine hour Machine up per setup hour Determine the difference in allocation between the two approaches. Traditional costing Standard $ Custom $ Activity-based costing Standard tA Custom tA LINK TO TEXT
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