ht5

Question 20 (5 points) Hayward Industries manufactures dining chairs and tables. The following information is available: Dining Chairs Tables Total Cost Machine setups 200 600 $48,000 Inspections 250 470 $72,000 Labour hours 2,600 2,400 Hayward is considering switching from one overhead rate based on labour hours to activity-based costing. Instructions Perform the following analyses for these two components of overhead: a) Compute total machine setups and inspection costs assigned to each product, using a single overhead rate. b) Compute total machine setups and inspection costs assigned to each product, using activity-based costing. c) Comment on your findings. hp