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Julio produces two types of calculators, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver
Julio produces two types of calculators, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activitybased costing. In preparing for the possible switch, Julio has identified two activity pools: materials handling and setup. The collected data follow:
tableStandard,Model,Deluxe ModelNumber of machine hours,Number of material moves,Number of setups,
Total estimated overhead costs are $ of which $ is assigned to the materials handling pool and $ is assigned to the setup pool.
Required:
Calculate the overhead assigned to each product using the traditional cost system.
Calculate the overhead assigned to each product using ABC.
Complete this question by entering your answers in the tabs below.
Calculate the overhead assigned to each product using the traditional cost system.
Note: Round the overhead rate to decimal places and round your final answer to the nearest whole dollar amount.
tableOverhead AssignedStandard Model,Deluxe Model,
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