16. (6 points) Door Company has two Divisions to produce doors: Standard and Deluxe. The following...

Transcribed Image Text:

16. (6 points) Door Company has two Divisions to produce doors: Standard and Deluxe. The following data was collected for each division: Activity Setups Cut & Trim Packing Standard 200 22,500 15,000 Cost Driver Cost 10tcl # of Setups Machine Hours $500,00 $10,500,000 $6,200,000 500 60,000 20,000 # of Shipments a. Calculate the ABC allocation rates for each of the three activities: Set-ups, Cut & Trim and Packing. Deluxe 300 37,500 5,000 b. What are the overhead costs allocated to the Deluxe Division using ABC? 16. (6 points) Door Company has two Divisions to produce doors: Standard and Deluxe. The following data was collected for each division: Activity Setups Cut & Trim Packing Standard 200 22,500 15,000 Cost Driver Cost 10tcl # of Setups Machine Hours $500,00 $10,500,000 $6,200,000 500 60,000 20,000 # of Shipments a. Calculate the ABC allocation rates for each of the three activities: Set-ups, Cut & Trim and Packing. Deluxe 300 37,500 5,000 b. What are the overhead costs allocated to the Deluxe Division using ABC?