Exercise 17-3 (Part Level Submission) EcoFabrics has budgeted overnead costs of

Question

Exercise 17-3 (Part Level Submission) EcoFabrics has budgeted overnead costs of $954,450. has allocated ovenead on a plantwide basis 10 its wo products (wool and cotton) using direct labor hours which are estimated to be 454,500 for the current year. The company has decded to experiment with activty- basedosting and nascreased two act ity cost os and eated act Ty costan ers. These v o cost pools are cutting cost an er s machine hours and design cost driver s numborot setups o ernead alocated to the cutting st poo' s $363,600 and $580,850 s alocated to tne design cost pool. Addtional information related to these pocis is as tolows. Wool Cotton Total Machine hours 101,000 101,000 202,000 Number ot satups 1,010 505 1,515 (a1) Caiculate the overhead rate using activity besed costing. (Round answers to 2 decimal places, e.g. 12.25.) Overhead rates for activity-based costing Cutting per mach ne hour Des gn per setup Click if you would ike to Show Work for this question: Show Work Attempts: 0 of 15 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

Cutting 1.8 =363600/202000 per machine hour Design 390 =590850/1515 per setup

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