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Exercises E17-1 Wilkin decided to wilkins Inc. has two types of handbags: standard and custom. The controller has to use a plantwide overhead rate based

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Exercises E17-1 Wilkin decided to wilkins Inc. has two types of handbags: standard and custom. The controller has to use a plantwide overhead rate based on direct laborests. The president has Factivity-based costing and wants to see how the results would differ if this system d Two activity cost pools were developed: machining and machine setup. Pre- Claw is information related to the company's operations. Assigni overhead using traditional costing and ABC (01.4), AP XS XLS haard of activity were used. Two sented below is Standard Custom Direct labor costs $50,000 $100,000 Machine 1,000 1,000 Setup hours 100 400 Total estimated overhead costs are $270,000. Overhead cost allocated to the machining activity cost pool is $170,000, and $100,000 is allocated to the machine setup activity cost pool. Instructions (a) Compute the overhead rate using the traditional (plantwide) approach. (b) Compute the overhead rates using the activity-based costing approach. (e) Determine the difference in allocation between the two approaches. I n leie related to its product lines, using Explain difference between un and activity-ba

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