Question: Setting up equipment $ 5 4 0 , 0 0 0 Other overheard $ 3 , 7 2 0 , 0 0 0 Setting up

Setting up equipment $540,000
Other overheard $3,720,000
Setting up equipment is based on setup hours, and other overhead is based on oven hours.
Castle Dale produces two products, Fudge and Cookies. Information on each product is as follows:
\table[[,Fudge,Cookies],[Batches produced,16,000,890,000],[Setup hours,7,200,1,800],[Oven hours,3,000,21,000]]
Required:
Calculate the activity rate for (a) setting up equipment and (b) other overhead.
a. Setting up equipment ,$, per setup hour
b. Other overhead per oven hour
How much total overhead is assigned to Fudge using ABC ?
$
What is the unit overhead assigned to Fudge using ABC ? Round to the nearest cent.
$, per unit
Now, ignoring the ABC results, calculate the plantwide overhead rate, based on oven hours. Round to the nearest cent. per oven hour
How much total overhead is assigned to Fudge using the plantwide overhead rate?
$
6a. The difference in the total overhead assigned to Fudge is different under the ABC system and non-ABC system because
6b. What is the difference in total overhead assigned to fudge under the two methods?
 Setting up equipment $540,000 Other overheard $3,720,000 Setting up equipment is

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