or the possible switch, Julio has identified two cost pools: materials handling
ID: 2330286 • Letter: O
Question
or the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow 26,700 935 585 Total estimated overhead costs are $379,700, of which $172,700 is assigned to the material handling cost pool and $207,000 is assigned to the setup cost pool 1. Calculate the overhead assigned to each product using the traditional cost system. (Round the overhead rate to four decimal places.) 2. Calculate the overhead assigned to each product using ABC. bo Hints References eBook & Resources 0 Type here to searchExplanation / Answer
Working for overhead recovery rates:
1
2
Cost pool Amount Driver Rate Material handling 172,700 1,570 110 Per material move Set up cost 207,000 690 300 per setup Total estimated overhead 379,700 58,400 6.50 Per machiner hourRelated Questions
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