Marider Industries makes two types of windbreaker jackets: one for spring and one for winter. Marider...

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Marider Industries makes two types of windbreaker jackets: one for spring and one for winter. Marider uses a traditional costing system and is considering switching to an Activity-Based Costing system. Marider applies overhead on the basis of machine hours. Below is information about its production facility. Sales Materials Cost Labor Cost Units Produced and Sold Total Direct Labor Hours Total Estimated Overhead Cost Total Estimated Direct Labor Hours Activity Cutting Sewing Inspecting Packing Machine Setups Material Moves in si S S S S Spring 378,000 $ 52,900 $ 41,400 $ 4,200 10,880 117,000 14,500 Activity Driver Cutting Hours Sewing Hours Number of Inpections Units Produced Number of Setups Number of Material Moves Activity-Based Costing Information Total Estimated Cost $ en is een is in $ $ $ Winter $ 288,000 26,100 24,300 2,400 3,240 21,060 32,760 4,680 11,700 17,550 29,250 Spring Usage Required: 1. Calculate the Predetermined Overhead Rate. 2. Use the Predetermined Overhead Rate to calculate total overhead applied to each jacket type. 3. Calculate the Gross Profit per jacket type. 4. Calculate the Activity Rates for the Activity-Based Costing system. 5. Use the Activity Rates to calculate the total overhead applied to each jacket type. 6. Calculate the Gross Profit per jacket type. 1,580 9,300 200 2,300 60 20 Winter Usage 740 2,500 50 900 150 90 Total 2,320 11,800 250 3,200 210 110 Marider Industries makes two types of windbreaker jackets: one for spring and one for winter. Marider uses a traditional costing system and is considering switching to an Activity-Based Costing system. Marider applies overhead on the basis of machine hours. Below is information about its production facility. Sales Materials Cost Labor Cost Units Produced and Sold Total Direct Labor Hours Total Estimated Overhead Cost Total Estimated Direct Labor Hours Activity Cutting Sewing Inspecting Packing Machine Setups Material Moves in si S S S S Spring 378,000 $ 52,900 $ 41,400 $ 4,200 10,880 117,000 14,500 Activity Driver Cutting Hours Sewing Hours Number of Inpections Units Produced Number of Setups Number of Material Moves Activity-Based Costing Information Total Estimated Cost $ en is een is in $ $ $ Winter $ 288,000 26,100 24,300 2,400 3,240 21,060 32,760 4,680 11,700 17,550 29,250 Spring Usage Required: 1. Calculate the Predetermined Overhead Rate. 2. Use the Predetermined Overhead Rate to calculate total overhead applied to each jacket type. 3. Calculate the Gross Profit per jacket type. 4. Calculate the Activity Rates for the Activity-Based Costing system. 5. Use the Activity Rates to calculate the total overhead applied to each jacket type. 6. Calculate the Gross Profit per jacket type. 1,580 9,300 200 2,300 60 20 Winter Usage 740 2,500 50 900 150 90 Total 2,320 11,800 250 3,200 210 110

Answer rating: 100% (QA)

To solve the given problem lets follow the steps one by one 1 Calculate the Predetermined Overhead Rate Predetermined Overhead Rate Estimated Overhead Cost Estimated Machine Hours For the traditional ... View the full answer