Question: The controller for BEC Events Inc. uses activity-based-costing and has established the following overhead cost pools and cost drivers. BEC Events received an order requires
The controller for BEC Events Inc. uses activity-based-costing and has established the following overhead cost pools and cost drivers.
BEC Events received an order requires 5 trips, 10 tent set-ups, 15 equipment set-ups, 10 inspections, and 40 labor hours.
1.What is the cost driver rate forEquipment set-ups?
2.What is the cost driver rate forInspections?
3.What is the total overhead assigned to this order?
4.If the controller were to use a single, predetermined overhead rate based onlabor hours, what is the rate ($)?
5.If the controller were to use a single, predetermined overhead rate based onlabor hours, what would be thetotal overheadassigned to this order?
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