Question: 2. Management is considering using ABC to apply manufacturing overhead costs to products for external financial reports. Some preliminary work has been done, and the
2. Management is considering using ABC to apply manufacturing overhead costs to products for external financial reports. Some preliminary work has been done, and the data that have been collected are displayed below. Using these data, calculate the predetermined overhead rate for each activity cost pool identified below. (Round your answers to 2 decimal places.) Order processing (orders received) Print setup (number of batches) Artwork and graphic design (labour-hours) Quality control (number of inspections). Total overhead cost Activity Center Predetermined Overhead Rate Order processing Print setup Graphic design Quality control per order per setup per hour per inspection Activity Measure Estimated Total Overhead Indoori Costs Outdoor Banners Banners Total $ 480,000 160,000 800 1,280 800 1,600 320 1,600 1,120,000 11,200 11,200 160,000 $1,920,000 640 640 22,400 1,280 3. Using the predetermined manufacturing overhead rates that you computed in (2) above, do the following: a. Determine the total amount of manufacturing overhead cost that would be applied to each product using the ABC system. After ere to search O < Prev 3 of 3 Next
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