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. |
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