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Please answer in an EXCEL spreadsheet and include formulas as well and I will be sure to like the solution. Thanks so much Assign overhead
Please answer in an EXCEL spreadsheet and include formulas as well and I will be sure to like the solution. Thanks so much
Assign overhead using traditionel casting and ABC. Excel E4.4 (LO 1, 2), AN Altex Inc. manufactures two products; car wheels and trock wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Total estimated overhead costs for the two product lines are $770,000. Instructions a. Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to assign overhead costs. b. Hermann is not satisfied with the traditional method of allocating owerbead because be believes that most of the owerbead costs relate to the truck wheels product line because of it complexity. He therefore develops the following three activity cost pools and related cost drivers to better understand these costs. Compute the activity-based overhead rates for these three cost pools. c. Compute the cost that is assigned to the ear wheels and truck wheels product lines using an activity-based costing systen, given the following information. Use of Cost Drivers per Product d. What do you believe Hermann should do? Assign oberhead using traditional costing and ABC Step by Step Solution
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