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Question 2 of 3 < > View Policies Current Attempt in Progress -/10 E Sunland, Inc. produces two types of gas grills: a family
Question 2 of 3 < > View Policies Current Attempt in Progress -/10 E Sunland, Inc. produces two types of gas grills: a family model and a deluxe model. Sunland's controller has decided to use a plantwide overhead rate based on direct labor costs. The president of the company recently heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations: Family Model Deluxe Model Direct labor costs Machine hours Setup hours $73,200 $146,400 2,000 2,000 200 800 Total estimated overhead costs are $439,200. Overhead cost allocated to the machining activity cost pool is $263,520 and $175,680 is allocated to the machine setup activity cost pool.
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