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Problem 4: New Wave Company produces two products, Side A and Side B. Units produced during the period totaled 13,625 for Side A and
Problem 4: New Wave Company produces two products, Side A and Side B. Units produced during the period totaled 13,625 for Side A and 11,400 for Side B. Total manufacturing overhead costs are P550,000. The company uses ABC in allocating its overhead costs. The following additional information were gathered. Activity Set up Machining Cost Driver No.of set ups Side A Side B Total Cost 100 400 P100,000 Machine hours No. of inspections 3,000 2,000 400,000 100 300 50,000 Inspections 1) What is the overhead rate for each activity? Set up- Machining 2) How would the total overhead be allocated to: Side A- 3) What would be the overhead cost per unit for: Side A- Inspections- Side B- Side B-
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New Wave Company ActivityBased Costing ABC 1 Overhead Rate for Each Activity A Set Up Total Cost for Set UpP100000 Cost DriverNumber of Set Ups combin...Get Instant Access to Expert-Tailored Solutions
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