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please help with step by step solution Claire Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct
please help with step by step solution
Claire Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products.Activity Pool | Department Costs | Cost Driver |
Binding | $257,922 | Number of units |
Printing | 794,052 | Machine hours |
Product design | 196,236 | Change orders |
General | 641,700 | None |
Total overhead costs | $1,889,910 |
Tablets | Books | |
Units | 62,900 | 20,000 |
Direct materials cost per unit | $2.86 | $10.44 |
Direct labor cost per unit | $3.87 | $8.12 |
Direct labor hours | 25,400 | 16,000 |
Machine hours | 125,000 | 120,000 |
Change orders | 1,200 | 2,000 |
Calculate ABC rates. (Round answers to 2 decimal places, e.g. 15.25.)
ABC rates | |
Binding | $ 12.90/unit |
Printing | $ 6.62/machine hour |
Product design | $ 98.12/change order |
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