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I need help with 6a and 6b thank you! I always give thumbs up! Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two
I need help with 6a and 6bthank you! I always give thumbs up!
Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting equipment $468,000 Other overheard $2,800,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information each product is as follows: Fudge Cookies Units produced 8,000 445,000 Setup hours 7,200 1.800 Oven hours 2,600 18,200 Required: Round your answers to the nearest whole dollar, unless otherwise directed. 1. Calculate the activity rate for (a) setting up equipment and (b) other overhead. a. Setting up equipment 52 per setup hour b. Other overhead 135 per oven hour 2. How much total overhead is assigned to Fudge using ABC? 725,400 3. What is the unit overhead assigned to Fudge using ABC? Round to the nearest cent. 90.68 per unit 4. Now, ignoring the ABC results, calculate the plantwide overhead rate, based on oven hours. Round to the nearest cent. 157.5 per oven hour 5. How much total overhead is assigned to Fudge using the plantwide overhead rate? 409,500 6a. The difference in the total overhead assigned to Fudge is different under the ABC system and non-ABC system because 6b. What is the difference in total overhead assigned to fudge under the two methods? different treatment of setup costs. difference in the units produced. difference in the sale prices of the products. different oven temperatures required for baking fudge and cookies. on-ABC system becauseStep by Step Solution
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