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Problem 3 (15 points) The annual MOH budget is equal to CAD 850,000 based on an annual level of activity of 15,000 DLH. There are
Problem 3 (15 points) The annual MOH budget is equal to CAD 850,000 based on an annual level of activity of 15,000 DLH. There are two job orders: job order 501 (1,500 units), and job order 502 (2,500 units). One unit of the product requires 3 DLH. Activity pool OH budgetPlanned level of activity (in CAD) Machine setup 60,000 200 setups Quality inspection 50,000 500 inspection hours Purchase order 50,000 400 orders Part handling 40,000 10,000 parts 20,000 5,000 hours MH Activity pool Job order 501 Job order 502 Machine setup 60 setups 30 setups Quality inspection 10 inspection hours 25 inspection hours Purchase order 60 orders 20 orders Part handling 500 parts 1,000 parts MH 100 hours 100 hours Required: Calculate the predetermined OH rate using the 2 methods of Traditional Method and ABC Analysis Method
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