Weisman, Inc. uses activity-based costing as the basis for information to set prices for its six lines
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Question:
Weisman, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats.
Activity Cost Pools | Estimated | Expected Use of | |||
Designing | $445,000 | 11,800 | designer hours | ||
Sizing and cutting | 4,050,000 | 168,000 | machine hours | ||
Stitching and trimming | 1,460,000 | 81,500 | labor hours | ||
Wrapping and packing | 324,000 | 31,500 | finished units |
Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools. (Round answers to 2 decimal places, e.g. 12.25.)
Activity-based overhead rates | |||
Designing | $ | per designer hour | |
Sizing and cutting | $ | per machine hour | |
Stitching and trimming | $ | per labor hour | |
Wrapping and packing | $ | per finished unit |
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-0470477144
5th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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