PRINTER VERSION BACK NEXT Elle Inc, makes two types of handbags: standard and custom. The controller has decided to use a plant-wide overhead rate based on direct labour costs. The president has heard of activity-based costing and wants to see how the results would offer this system were used. Two activity cost pools were developed machining and machine set-up. Presented below is information related to the company's operations. Direct labour costs Machine hours Set-up hours Standard $50,000 500 100 Custom $100,000 1,000 400 Total estimated overhead costs are $255,000. The overhead cost allocated to the machining activity cost pool is $165,000, and $90,000 is allocated to the machine set-up activity cost pool Calculate the overhead rate using the traditional (plant-wide) approach. Predetermined overhead rate % of direct labour cost LINK TO TEKT LINK TO TEXT Calculate the overhead rate using the activity-based costing approach. Cost Pool Overhead Rate per machine hour Machining Machine set-ups per set-up hour Determine the difference in allocation between the two approaches. (Enter negative answers using either a negative in preceding the number e.. -2,945 or parentheses .. (2,048 Traditional costing (A) Activity-based costing (8) Difference (A)-(B) Standard Custom company's operations. w the results WOU Gert System were used two COVEY COSE POors were develope: maching and machine set-up. Presente en is normation restes to the PRINTER VERSION BACK NORTE Direct labour costs Machine hours Set-up hours Standard $50,000 500 100 Custom $100,000 1,000 400 Total estimated overhead costs are $255,000. The overhead cost allocated to the machining activity Cost pool is $165,000, and $90,000 is located to the machine Calculate the overhead rate using the traditional (plant-wide) approach. t-up activity cost pool Predetermined overhead rate of direct labour cost LINK TO TEXT LINK TO TEXT Calculate the overhead rate using the activity-based costing approach. Overhead Rate Cost Pool Machining per machine hour Machine set-ups per set-up hour LINK TO TEXT LINK TO VIDEO: SIMILAR EXERCISE preceding the number -2.945 of parentheses .. (3.945) Determine the difference in allocation between the two approaches. (Enter negative answers using either a negative si Traditional costing (A) Activity-based costing (0) Difference (A)-() Standard Custom Q Search or type URL