DonutsDunRite has the following overhead during the month:

Equipment setup: 20 hours costing $2,100
Machine hours: 3,000 hours costing $65,000
Moving product: 60 hours costing $1,200
The company produces only two products, Basic and Ultra, which have the following factory overhead activities associated with them:

Equipment setup: 5 hours Basic and 10 hours Ultra
Machine hours: 600 hours Basic and 1,400 hours Ultra
Moving product: 35 hours Basic and 15 hours Ultra
Your manager has asked you to assign overhead to the two products using activity-based costing.

Answer rating: 100% (QA)

To assign overhead to the two products using activitybased costing we will first calculate the prede... View the full answer