Question
XYZ Corp uses an ABC costing system. It has projected the following indirect costs: (Yearly Budgeted Costs) Building Depreciation $ 200, 000.00 Machine Maintenance $
XYZ Corp uses an ABC costing system. It has projected the following indirect costs:
(Yearly Budgeted Costs)
Building Depreciation $ 200, 000.00
Machine Maintenance $ 95, 000.00
Building Insurance $ 12,000.00
Machine depreciation Cost $ 345,000.00
Machine Electrical Cost $ 130, 000.00
Building Utility Cost $ 48,000.00
Building Janitorial Cost $ 36, 000.00
Total Costs
(Yearly Budgeted Drivers)
Machine Hours 500, 000.00
Building Square Footage 20, 000.00
Direct Labor Hours 350, 000. 00
Units Produced 200, 000. 00
Using the best cost driver for the Machine Cost Pool, calculate the predetermined overhead rate.
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