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PLANT-WIDE RATE AND ACTIVITY-BASED COSTING (LO 1, 2) The controller for Vitrina Inc. has established the following activity cost pools and cost drivers. Budgeted Budgeted

PLANT-WIDE RATE AND ACTIVITY-BASED COSTING (LO 1, 2) The controller for Vitrina Inc. has established the following activity cost pools and cost drivers. Budgeted Budgeted Overhead Level for Activity Cost Pool Cost Cost Driver Cost Driver Machine setups $200,000 Number of setups 160 Material handling 100,000 Weight of Waste control material 50,000 kilograms chemicals 10,000 kilograms 50,000 Weight of Quality control 75,000 Number of inspections 300 Other overhead costs 200,000 Machine hours 20,000 Each order must be a minimum of 1,000 boxes of film chemicals. The production requirements for each minimum order are as follows: Machine setups Material handling Waste Control 1,500 kilograms 5 setups 200 kilograms Quality Control Other Overhead Costs Required: 5 inspections 500 machine hours 1 Calculate the overhead that should be assigned to each minimum order of film chemicals using the above data. 2 Calculate the overhead that should be assigned to each minimum order of film chemicals if Vitrina decides to use a single predetermined overhead rate based on machine hoursimage text in transcribed

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