Question: Activity-Based Costing In order to compare WoolCorp's current method with activity-based costing, you interview the production staff and compile the following information, which relates to
Activity-Based Costing In order to compare WoolCorp's current method with activity-based costing, you interview the production staff and compile the following information, which relates to the costs for raw wool and wool yarn. Type of Cost Activity Base Total Cost Sorting Hours of sorting $25,600 Cleaning Units of cleaning machine power 38,400 Combing Hours of combing machine use 1,200 Raw Wool Wool Yarn 4,000 Hours of sorting required Units of cleaning machine power required Hours of combing machine use required 1,000 1,800 4,200 70 30 In the following table, compute and enter the activity rate for each of the three activities. If required, round your answers to the nearest cent. Activity Activity Rate Sorting per sorting hour Cleaning per unit of cleaning machine power Combing per hour of combing machine use In the following table, allocate the costs of sorting, cleaning, and combing based on the rates of activity consumed by each product's process. When required, round your answers to the nearest dollar. Raw Wool Wool Yarn Sorting cost Cleaning cost Combing cost Total cost sl
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