Question: Setting up equipment $ 5 4 0 , 0 0 0 Other overheard $ 3 , 7 2 0 , 0 0 0 Setting up
Setting up equipment $
Other overheard $
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:
tableFudge,CookiesBatches produced,Setup hours,Oven hours,
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?
$
a The difference in the total overhead assigned to Fudge is different under the ABC system and nonABC system because
b What is the difference in total overhead assigned to fudge under the two methods?
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