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q6t Pharoah Steel Company has budgeted manufacturing overhead costs of $1,971,000. It has allocated overhead on a plant-wide basis to its two products (soft steel
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Pharoah Steel Company has budgeted manufacturing overhead costs of $1,971,000. It has allocated overhead on a plant-wide basis to its two products (soft steel and hard steel) using machine hours, which are estimated to be 100,000 for the current year, The cornpary has decided to experiment with activity-based costing and has created five activity cost poois and related activity cost drivers as follows: Each unit of the products requires the following: Each unit of the products requires the following: Under traditional product costing using machine hours, calculate the total manufacturing cost per unit of both products, (Round predetermined overhead rate to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, eg. 1525.) Under ABC, prepare a schedule showing the calculation of the activity-based overhead rates (per cost driver). (Round answers to 2 decimal places, es. 15.25.) Under ABC, prepare a schedule showing the calculation of the activity-based overhead rates (per cost driver). (Round answers to 2 decimal places, eg. 15.25.) Calculate the total manufacturing cost per unit for both products under ABC. (Round per cost driver to 2 decimal places. eg. 25.25 and final answers to 0 decimal places, eg. 1,525.) Step by Step Solution
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