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Sheridan Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes.
Sheridan Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes. tableActivity CostCost Driver,Deluxe,tablee of TextbModerateEconomyMachine maintenance $Number of machine hours,Setups $Number of setups,Packing $Number of cartons,Photo development $Number of pictures, Deluxe textbooks are made with the finestquality paper, sixcolor printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings. Required a Sheridan currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year: tableDeluxeModerate,Economy Determine the overhead cost per book for each book type. b Determine the overhead cost per book, assuming that the volumebased allocation system described in Requirement a is replaced with an activitybased costing system. Note: For all requirements, round your answers to decimal places.
Sheridan Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes.
tableActivity CostCost Driver,Deluxe,tablee of TextbModerateEconomyMachine maintenance $Number of machine hours,Setups $Number of setups,Packing $Number of cartons,Photo development $Number of pictures,
Deluxe textbooks are made with the finestquality paper, sixcolor printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings.
Required
a Sheridan currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year:
tableDeluxeModerate,Economy
Determine the overhead cost per book for each book type.
b Determine the overhead cost per book, assuming that the volumebased allocation system described in Requirement a is replaced with an activitybased costing system.
Note: For all requirements, round your answers to decimal places.
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