PDF Real ACC406 Book (1).pdf o a Search or enter web address # : 379 of 787 Q L Page view A Read aloud y Draw Highlight Erase G 19 1. Calculate the activity rate for the plastic injection moulding activity. 2. Calculate the activity rate for the decal application activity. OBJECTIVE Exercise 7-11 Comparing ABC and Plantwide Overhead Cost Assignments The Mackinaw Chocolate Company uses ABC. The controller identified two activities and their budgeted costs: Setting up equipment Other overhead $ 76,300 175,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Mackinaw produces two products: fudge and cookies. Information on each product is as follows: Fudge Cookies Units produced Setup hours Oven hours 2,500 1,000 250 12,500 250 1.250 Required: Round answers to four decimal places. 1. Calculate the activity rate for: a. setting up equipment b. other overhead 2. How much total overhead is assigned to fudge using ABC? 3. What is the unit overhead assigned to fudge using ABC? 4. Now, ignoring the ABC results, calculate the plantwide overhead rate, based on oven hours. 5. How much total overhead is assigned to fudge using the plantwide overhead rate? 6. Explain why the total overhead assigned to fudge is different under the ABC system (i.e., using the activity rates) than under the traditional system (i.e., using the plantwide rate). OBJECTIVE Exercise 7-12 Activity-Based Product Costing Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients