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please answer both questions, greatly appreciated! Question 1 question 2 Swifty Inc: has two types of handbags: standard and custom. The controller has decided to
please answer both questions, greatly appreciated!
Question 1
question 2
Swifty Inc: has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining (machine hours) and machine setup (number of setups). The total estimated machine hours is 2,400 , and the total estimated number of setups is 510 . Presented below is information related to the company's operations. Total estimated overhead costs are $294,000. Overhead cost allocated to the machining activity cost pool is $192,000, and $102,000 is allocated to the machine setup activity cost pool. Compute the overhead rate using the traditional (plantwide) approach information related to each product's use of cost drivers. (Round answer to 0 decimal places, eg. 12.) Predetermined overhead rate Wi of direct labor cost Compute the overhead rates using the activity-based costing approach. Machining $ per machine hour Machine setup $ per setup hour eTextbook and Media Determine the difference in allocation between the two approaches. Bramble Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. The traditional and the activity-based costing systems assign the same amount of direct materials and direct labor costs. For each product line, compute operating income using the traditional costing system. Product 540x Product 137Y$ Product 2495$ For each product line, compute operating income using the activity-based costing system. Product 540X$ Product 137Y Product 2495 Using the following calculation, compute the percentage difference k operating income for each of the product lines of Ayala: [Operating income (ABC) - Operating income (traditional cost)] + Operating Income (traditional cost). (Round answers to 2 decimal ploces, eg. 12.25\%. Enter negative answers using elther a negatlve sign preceding the number e. 45.25% or parentheses e.8. (45.25). Product 540x % Product 137y 56 Product 2495 %Step by Step Solution
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