Mastery problem: differential analysis, product pricing, and activity-based costing

WoolCo X Traditional Costing Predetermined Factory Overhead Rate = (Estimated Total Factory Overhead Costs) = (Estimated Activity Base) WoolCo has been using traditional costing with combing machine hours as the activity base. The company would like to consider activity-based costing. In order to understand their current system better, you evaluate WoolCo's current method of costing for raw wool and wool yam. The production staff has compiled the following information for you on the production of 450 pounds of either raw wool or wool yam, Total Factory Overhead Costs Total Costs Sorting $25,600 Cleaning 39,000 Combing 1,300 Raw Wool Wool Yarn Hours of combing machine use required 80 20