Question: help with a, b, c, & d The Western Co. established the following overhead cost pools and cost drivers Estimated Cost Overhead Cost Pool Driver
The Western Co. established the following overhead cost pools and cost drivers Estimated Cost Overhead Cost Pool Driver Level Assembly Setups Machine operating costs Total overhead costs Budgeted Overhead Cost Driver $1,400,000 W of labor hrs $900,000 # of setups $700,000 # of machine hrs $3,000,000 40,000 labor hrs 30.000 setups 50 000 machine hrs 4,000 labor hrs A recent order for sailboats used Assembly Setups Machine hours (MHS) 200 setups 2,600 machine hours Required a) What is the overhead rate per machine hour if the number of machine hours (MHS) is used as a single cost driver under traditional costing system? b) Utilizing traditional costing, how much overhead is assigned to the order based on machine hours as a single cost driver? Utilizing activity-based costing, how much overhead is assigned to the order? d) Explain the reasons why the overhead costs computed under two systems are different TTT Arial 3(12pt
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