ASAP part c

When Margaret realized how small the margin was for her main product, she was aghast. She knew the company had already achieved significant direct materials savings by partnering with its supplier. The consultant brought in last year further streamlined labor usage, bringing her to best-in-class levels for labor. The only other area to look at was overhead. Total MOH costs this coming year are estimated at $1,568,000. Three key activities are the primary causes of total MOH. They are identified as follows, including the budgeted cost, budgeted cost driver, and budgeted cost driver quantities for each. Assuming the company uses one plant-wide rate based on DL hours to allocate MOH, calculate that rate and determine total allocated MOH for the main product, (Round plant-wide rate to 2 decimal places, es. 15.25 and final answer to 0 decimal ploces, eg. 5,125.] Total allocated MOH for the main product Activity-based Rate Cutting 11 per machine hour Fabrication B per DLhour Inspection 17 per inspection hour Applied MOH for Activity Cutting Fabrication Inspection \begin{tabular}{|r|r|} \hline 5 & 83600 \\ \hline & 172000 \\ \hline \end{tabular} Total applied MOH 291300 Compare the allocations using the plant-wide rate versus the activity-based rates. Difference Do the ABC allocations alleviate any of Margaret's concerns about the low margin of this product? Attempts: 0 of 1 use