accounting question 384504
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Dunnstreet 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, Dunnstreet has identified two cost pools: materials handling and setup. The collected data follow: |
| Standard Model | Deluxe Model | |||
| Number of machine hours | 25,000 | 30,000 | ||
| Number of material moves | 550 | 850 | ||
| Number of setups | 80 | 500 | ||
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Total estimated overhead costs are $225,000 of which $70,000 is assigned to the material handling cost pool and $155,000 is assigned to the setup cost pool. Don't use plagiarized sources. Get Your Custom Essay on
accounting question 384504
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6.
E4 14 Requirement 1
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Calculate the overhead assigned to each product using the traditional cost system. Round the overhead rate to four decimal places if necessary.(Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.Omit the “$” sign in your response.) |
| Overhead assigned | |
| Standard model | $ |
| Deluxe model | $ |
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7.
E4 14 Requirement 2
| Requirement 2: |
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Calculate the overhead assigned to each product using ABC. Round activity rates to four decimal places if necessary.(Do not round intermediate calculations and round your final answers to 2 decimal places. Omit the “$” sign in your response.) |
| Overhead assigned | |
| Standard model | $ |
| Deluxe model | $ |
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eBook Links (5)references
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