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please help me with D 1 & 2 (1) Determine the overhead rates using the activity-based costing approach with three cost pools, (Round answers to
please help me with D 1 & 2
(1) Determine the overhead rates using the activity-based costing approach with three cost pools, (Round answers to 2 decimal places. es. 15.25) (2) Calculate the overhead allocation for the family model and the deluxe model using three activity cost pools. Sheffield, Inc decided to implement the activity-based costing approach and was quite successful in its use. However, the controller is wondering if instead of only two activity cost pools, they should expand to three activity cost pools based on the following The estimated overhead of $469,800 is allocated as follows: machining activity cost pool $250,560, machine set up $177,480 and packaging $41,760. (1) Determine the overhead rates using the activity based costing approach with three cost pools. (Round onswers to 2 decimal places. ce 15.253 Sheffield, inc produces two types of gas grolls: a family model and a deluwe model. Shetfield's controlier has decided to use a plantwide overhead rate based on direct labor costs. The president of the company recently 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 and machine setup. Presented belowis information related to the compary/s operations: Total estimated overhead conts are $469,800, Overhesd cost allocated to the machining activity cost pool is $281,860 and $187,920 is allocated to the machine setup activity cost pool. Calculate the overhead allocation for the family model and the deluxe model using three activity cost pools. What is the difference in allocation between two activity cost pools and three activity cost pools? Is the difference in allocation worth using the third activity cost poon? Difference $ Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, eg. 15.25.) Overhead rate $ Step by Step Solution
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