Julio produces two types of calculators, standard and deluxe. The company is currently using a traditional...
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Julio produces two types of calculators, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two activity pools: materials handling and setup. The collected data follow: Number of machine hours Number of material moves Number of setups Standard Model 25,800 590 70 Deluxe Model 30,800 890 540 Total estimated overhead costs are $347,100, of which $170,200 is assigned to the materials handling pool and $176,900 is assigned to the setup pool. Required: 1. Calculate the overhead assigned to each product using the traditional cost system. 2. Calculate the overhead assigned to each product using ABC. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the overhead assigned to each product using the traditional cost system. Note: Round the overhead rate to 4 decimal places and round your final answer to the nearest whole dollar amount. Overhead Assigned Standard Model Deluxe Model Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the overhead assigned to each product using ABC. Standard Model Deluxe Model Overhead Assigned < Required 1 Required 2 > Julio produces two types of calculators, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two activity pools: materials handling and setup. The collected data follow: Number of machine hours Number of material moves Number of setups Standard Model 25,800 590 70 Deluxe Model 30,800 890 540 Total estimated overhead costs are $347,100, of which $170,200 is assigned to the materials handling pool and $176,900 is assigned to the setup pool. Required: 1. Calculate the overhead assigned to each product using the traditional cost system. 2. Calculate the overhead assigned to each product using ABC. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the overhead assigned to each product using the traditional cost system. Note: Round the overhead rate to 4 decimal places and round your final answer to the nearest whole dollar amount. Overhead Assigned Standard Model Deluxe Model Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the overhead assigned to each product using ABC. Standard Model Deluxe Model Overhead Assigned < Required 1 Required 2 >
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1 Calculate the overhead assigned to each product using the traditional cost system To calculate the overhead assigned to each product using the traditional cost system we need to use the overhead rat... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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