Units produced 18,100 3,620 Direct materials cost per unit $ 7 Machine-hours per unit Production runs...

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Units produced 18,100 3,620 Direct materials cost per unit $ 7 Machine-hours per unit Production runs per quarter 4 144 $ 19 7 72 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: Machine depreciation Setup labor Materials handling Total $ 97,740 48,870 39,096 $ 185,706 Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. Units produced 18,100 3,620 Direct materials cost per unit $ 7 Machine-hours per unit Production runs per quarter 4 144 $ 19 7 72 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: Machine depreciation Setup labor Materials handling Total $ 97,740 48,870 39,096 $ 185,706 Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg.

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a To find the predetermined overhead rate for the quarter based on machinehours we divide th... View the full answer