Sunland, Inc. produces two types of gas grills: a family model and a deluxe model. Sunland's...

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Sunland, Inc. produces two types of gas grills: a family model and a deluxe model. Sunland's controller has decided to use a plantwide overhead rate based on direct labor costs. The president of the company recently heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations: Family Model Deluxe Model Direct labor costs $73,200 $146,400 Machine hours Setup hours 2,000 2.000 200 800 Total estimated overhead costs are $439,200. Overhead cost allocated to the machining activity cost pool is $263,520 and $175,680 is allocated to the machine setup activity cost pool. (a) Your Answer Correct Answer (Used) Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 15.25.) Overhead rate $ 2.00 Sunland, Inc. produces two types of gas grills: a family model and a deluxe model. Sunland's controller has decided to use a plantwide overhead rate based on direct labor costs. The president of the company recently heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations: Family Model Deluxe Model Direct labor costs $73,200 $146,400 Machine hours Setup hours 2,000 2.000 200 800 Total estimated overhead costs are $439,200. Overhead cost allocated to the machining activity cost pool is $263,520 and $175,680 is allocated to the machine setup activity cost pool. (a) Your Answer Correct Answer (Used) Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 15.25.) Overhead rate $ 2.00

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