scottsdale ltd. manufactures a variety of high-volume and low-vo

Project Description:

scottsdale ltd. manufactures a variety of high-volume and low-volume products to customer demand. presented is information on 2009 manufacturing overhead and activity cost drivers.product xi required 2,000 machine hours to fill 10 customer orders for a total of 8,000 units. required a. assuming all manufacturing overhead is estimated and predicted on the basis of machine hours determine the predicted total overhead costs to produce the 8,000 units of product xi. b. assuming manufacturing overhead is estimated and predicted using separate rates for machine hours, customer orders, and products (a multiple-level cost hierarchy), determine the predicted total overhead costs to produce the 8,000 units of product xi. c. calculate the error in predicting manufacturing overhead using machine hours versus using multiple cost drivers. indicate whether the use of only machine hours results in overpredicting or underpredicting the costs to produce 8,000 units of product xi. d. determine the error in the prediction of xi batch-level costs resulting from the use of only machine hours. indicate whether the use of only machine hours results in overpredicting or underpredicting the batch-level costs of product xi. e. determine the error in the prediction of xi product-level costs resulting from the use of only machine hours. indicate whether the use of only machine hours results in overpredicting or underpredicting the product-level costs of product xi.
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