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Hello, I need help on question 3 on my managerial accounting homework. 3 Sheridan Publishing identified the following overhead activities, their respective costs, and their
Hello, I need help on question 3 on my managerial accounting homework.
3 Sheridan Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes. 10 points of Textbook Activity (Cost) Machine maintenance (420,000) Setups ($690,000) Packing ($178,000) Photo development ($632,000) Cost Driver Number of machine hours Number of setups Number of cartons Number of pictures 300 30 10 4,300 Deluxe Moderate Economy 900 25 40 1,200 20 50 1,300 2,300 eBook Deluxe textbooks are made with the finest-quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings Print Required References a. Sheridan currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year: Deluxe 60,000 ModerateEco nomny 240,000 180,000 Determine the overhead cost per book for each book type b. Determine the overhead cost per book, assuming that the volume-based allocation system described in Requirement a is replaced with an activity-based costing system. (For all requirements, round your answers to 2 decimal places.) Deluxe Moderate Economy a. Cost per book (volume-based allocation) b. Cost per book (activity-based costing)Step by Step Solution
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