Carlton's Kitchen's three cost pools and overhead estimates are as follows: Estimated Use per Use per...

 

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Carlton's Kitchen's three cost pools and overhead estimates are as follows: Estimated Use per Use per Overhead Product A Product B Activity Cost Pool Machine Setups Assembly Machine Maintenance Cost Driver Setups Number of Parts Machine Hours 2,000 $105,000 105,000 44,000 200,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign. Product B Total Overhead (ABC) Total overhead (traditional) Difference $ 5,000 26,000 13,000 Product A Carlton's Kitchen's three cost pools and overhead estimates are as follows: Estimated Use per Use per Overhead Product A Product B Activity Cost Pool Machine Setups Assembly Machine Maintenance Cost Driver Setups Number of Parts Machine Hours 2,000 $105,000 105,000 44,000 200,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign. Product B Total Overhead (ABC) Total overhead (traditional) Difference $ 5,000 26,000 13,000 Product A

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Calculation of total overheads Activity Estimated Overhead Machine Setups 84000 Assembly ... View the full answer