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*Problem 7-20 Voss Visuals produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based
*Problem 7-20 Voss Visuals 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. Department Activity Pool Cost Driver Number of units Machine hours Change orders None Costs Binding Printing Product design General $297,000 955,500 234,000 727,500 $2,214,000 Total overhead costs Other information is as follows: Units Direct materials cost per unit Direct labor cost per unit Direct labor hours Machine hours Change orders Tablets Books 62,500 20,000 53.00 $10.00 4.00 $8.00 30,000 19,200 150,000 144,0D0 1,500 2,400
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