please show me how to work this problem.
mmthH 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 SD 51 c') Part 1 XYZ company manufactures chemicals used in radiological imaging systems. The company had originally used machine hours as the cost driver to develop one predetermined overhead rate. You have been recently hired by this company to review the costing of chemicals and realize that maybe a predetermined overhead rate does not give an accurate cost picture. You remember discussing overhead cost issues in MBA641 and want to implement ABC, so you have done some research and come up with the following activity cost pools and cost drivers. Budgeted Overhead Budgeted Level Activity Activit cost Pool Cost Cost driver for cost Driver Pool Rate Material handling 15,000 Weight of raw materials in pounds 30000 $0.50 Quality Assurance 20 000 Number of uali checks 1 000 control 30 000 used in ounds 8 000 Other overhead costs .Total Budgeted overhead cost 215!000 I Required: Make sure you show your work or use are! references for all calculations. You will not earn credit if you just type in your answer. 1. Using the information above calculate the single predetermined overhead rate this company is using based on machine hours as the costdriver. Predetermined overhead rate: E 2. If the company uses the ABC approach, what would be the pool rates for the activities you have identified above. I have computed the first activity pool rate above in column E and you should compute the remainder of the rates for the other 3 activities. 3. An order for a special chemical mix has the following production requirements: Material handling 2000 Weight of raw materials in pounds Quality Assurance 10 Number of quality checks Hazardous waste control 200 Weight of hazardous chemical used in pounds Other overhead costs 1000 Machine hours If the company is using the predetermined overhead rate based on machine hours, what is the overhead cost for this order? Total Overhead cost of this order using a predetermined overhead rate If the company is using the ABC method. what is the overhead cost for this order? Material handling Quality Assurance Other overhead costs Total Overhead cost of this order using ABC 4. Write a short report (at least 75 words) that identifies factors that explain why the two productcosting systems result in differing costs. Which system do you recommend? Why? Include in your recommendation an analysis of the activities being used
