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PART C (25 POINTS) Label all work and show all calculations. Darter Company mamifactures two products, widgets and cogs. The company expects to produce and
PART C (25 POINTS) Label all work and show all calculations. Darter Company mamifactures two products, widgets and cogs. The company expects to produce and sell 4.000 widgets and 5.000 cogs during the current year. The company uses activity-based costing. Darter has identified three overhead activity cost pools and their related cost drivers (1) Engineering design, driven by design hours: (2) Product testing, driven by the number of product tests, and (3) General factory, driven by machine hours. Data relating to the company's three activity cost pools are given below for the current year: Activity Cost Pool Engineering design Product testing General factory Estimated Overhead Cost S 80,000 $160.000 $240,000 Estimated Cost Driver Widects Cogs 650 050 3.600 2.800 7,500 8,500 Required: 1. Using the traditional approach, delermine the applied overhead rate for Darler Company based on machine hours. 2. Using the activity-based costing approach, determine the applied overbead rates for Darter Company. 3. Rased on Darter Company's actual activity in March, presented below, determine the applied overhead assigned to Widgets using the activity-based costing approach: Cost Driver Widgets 55 Activity Cost Pool Engineering design Product testing General factory 310 650
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