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please answer section C Determine the difference in allocation between the two approaches Brambie inc, has two types of handbags:standard and custom. The controller has
please answer section C
Determine the difference in allocation between the two approaches Brambie 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 it 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 2.700 , and the total estimated number of setups is 480 . Presented below is information related to the company's operations. Totat eutimated overhead costs are $285,000. Overhesd cost allocated to the machining activity cost pool is $189,000, and $96,000 is allocated to the machine sttup activity cost pool. (a) Compute the owerhead rates using the activity-based costing approsch Machining 5 per machine hour Machine setup persetuphour Cornpute the overhead rate using the traditional (plantwide) approach information related to each product's use of cost drivers. (Round answer to 0 decimal ploces, es. 12.) Predetermined overhead rate Kof direct labor cost eTextbook and Meda Attempts: 1 of 2 used (b) Compute the overbesd rates using the activity tirsed costing aporouch Step by Step Solution
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