Question: . LO 6 . 4 A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity
LO A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activitybased costing:
Estimated Activity by Activity Center for Product Product and Estimated Cost, respectively. Machine setups, $ Assembly parts, Packaging pieces, Machine hour per unit, Production volume
How much overhead would be allocated to each unit under the traditional allocation method?
How much overhead would be allocated to each unit under activitybased costing?
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