Business, 16.02.2022 18:10 elizabethajih99
Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow: Standard Model Deluxe Model Number of machine hours 26,800 31,800 Number of material moves 640 940 Number of setups 120 590 Total estimated overhead costs are $403,310, of which $189,600 is assigned to the material handling cost pool and $213,710 is assigned to the setup cost pool. Required: 1. Calculate the overhead assigned to each product using the traditional cost system. 2. Calculate the overhead assigned to each product using ABC.
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Julio produces two types of calculator, standard and deluxe. The company is currently using a tradit...
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