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Vito Corporation manufactures two products: Product F771 and Product 148D. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing
Vito Corporation manufactures two products: Product F771 and Product 148D. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products F771 and 148D. 15 points Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $210,000 9,000 MHS Machine setups Number of setups $120,000 300 setups Product design Number of products $ 76,000 2 products Order size Direct labor-hours $330,000 10,000 DLHS Activity Measure Product F771 Product 148D Machine-hours 6,000 3,000 Number of setups 120 180 Number of products 1 1 Direct labor-hours 7,000 3,000 Required: a. What is the company's plantwide overhead rate? b. Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product F771? c. Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product 148D? SHOW YOUR WORK
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