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The total factory overhead for Norton Company is budgeted for the year at $300,000, divided into three activities: assembly, $200,000, setup. $50,000; and materials handling,
The total factory overhead for Norton Company is budgeted for the year at $300,000, divided into three activities: assembly, $200,000, setup. $50,000; and materials handling, $150,000. Norton manufactures two products Product A and Products. The activity-based usage quantities for each product by each activity are estimated as follows: Assembly Setup Material Handling Product 2.000 din 1,000 din 5 setups Product 10,000 din 24.000 din 15 setups Total activybane usage 12.000 dih 12,000 h 20 setups Determine the activity rate for the assembly activity * $25.00 $16.67 $1.67 $15.00 The total factory overhead for Martin Company is budgeted for the year at $375,000. Martin manufactures two garden products: a leaf blower and a garden wagon. These products each require four direct labor hours (din) to manufacture. Each product is budgeted for 2,500 units of production for the year. Determine the total number of budgeted direct labor hours for the year & 30,000 din 20,000 din 10,000 dih d. 1.250 dih Which of the following statements is true? 1. Factory overhead costs using activity rates are allocated to products by dividing the activity-base usage by the activity rate. b. Using the activity-based costing method typically results in more accurate product costs than the single plantwide rate. CC Product cost distortion cannot occur when the multiple production department rate method is used. d. Activity rates are calculated by dividing the activity base by budgeted activity cost
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