Crane Company manufactures two products, Regular and Supreme. Crane's estimated overhead costs consist of machining, $5000000;...

 

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Crane Company manufactures two products, Regular and Supreme. Crane's estimated overhead costs consist of machining, $5000000; and assembling, $2200000. Information on the estimated use of the cost driver by the two products is as follows: Regular Supreme Direct labor hours 10000 15000 Machine hours 10000 30000 Number of parts 90000 160000 Overhead applied to Regular using activity-based costing is Crane Company manufactures two products, Regular and Supreme. Crane's estimated overhead costs consist of machining, $5000000; and assembling, $2200000. Information on the estimated use of the cost driver by the two products is as follows: Regular Supreme Direct labor hours 10000 15000 Machine hours 10000 30000 Number of parts 90000 160000 Overhead applied to Regular using activity-based costing is

Answer rating: 100% (QA)

To apply overhead to the Regular product using activitybased costing ABC we need to allocate the overhead costs based on the usage of the relevant cos... View the full answer