v

Mastery Problem: Activity-Based Costing WoolCorp WoolCorp buys sheep's wool from farmers. The company began operations in January of this year, and is making decisions on product efferings, pricing, and veldairs. The company is also examining its method of assigning overhead to products. You ve just been hired as a production manager at WoolCorp. Currently WoolCorp makes two products: (1) raw, clean wool to be ured as stuffing or insulation and (2) wool yarn for use in the textile industrv: The company would like you to evaluate its costing methods for its raw wool and wool yarn. Single Plantwide Rate WoolCorp is currently using the single plantwide factory overhead rate methind, which uses a predetermined overhead rate based on an estimated aliocation base auch as direct labor haurs or machine hours. The rate is computed as follows: ingle Plantwide Factory Overhead Rate = (Total Budgeted factory Overhead) (Total Budgeted Plantwide Allocetion Bsse) WoolCorp has been using combing machine hours as its allocation base. The company would lake to consider activity baised costing. In order to understand their current system better, you evaluate WoolCorp $ current method of costing fior raw wool and wool yarn. The production staff has compiled the following information for you on the production of 550 pounds of either raw woot or wool varn. In the following tabie, use combing machine hours as the aliocation base for assigning erertead costs, to each produd. When required, rounit your amswers ti the nesrest dollar. Male Paritwide Factory Overhead fate: per combing hour Acthity-aased Costing In arder to compere WoolCnrp's current method with activity-based cesting, yeu interview the production staff and campilie the fellowing initsmratian, which relater to the cests for ram mool and wool yarn. In the foliowing tabie, compute and enter the activity rate for each of the thren activities, If required, round your answers to the nearest cent. tn the following table, allocote the costs of sorting, deaning, and combing based on the rates of activity consumed by each products grocess, When required, round your answers to the nearest dollar. Final Question Final