Question: Ivanhoe Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats. Calculate the activity-based overhead rates

Ivanhoe Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats. Calculate the activity-based overhead rates using the following budgeted data for each of the activity cost pools. (Round answers to 2 decimal places, e.g. 15.25.)

Activity Cost Pools

Estimated Overhead

Estimated Use of Cost Drivers per Activity

Sizing and cutting

$4,671,270

197,100

machine hours

Stitching and trimming

2,187,180

83,800

labour hours

Wrapping and packing

345,940

35,300

finished units

Cost Pool

Rate

Sizing and cutting

$enter a dollar amount per machine hour per machine hr.

Stitching and trimming

$enter a dollar amount per labour hour per labour hr.

Wrapping and packing

$enter a dollar amount per unit per unit.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!