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2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. Round interim calculations to two decimal places and round your final answers to the nearest dollar. Total Overhead Assigned Model X Model Y 3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places. Model X Model Y Percentage Error % %

2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. Round interim calculations to two decimal places and round your final answers to the nearest dollar. Total Overhead Assigned Model X Model Y 3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places. Model X Model Y Percentage Error % %

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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Approximately Relevant ABC Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Setting up equipment $126,000 Ordering materials 12,600 Machining 103,950 Receiving 24,420 Silven produces two models of cell phones with the following expected activity demands: Model X Model Y 5,500 V Units completed Number of setups Number of orders Machine hours Receiving hours Required: 80 200 5,400 370 Model X Model Y Activity Driver Number of setups Number of orders Machine hours Receiving hours 11,000 40 400 4,050 740 Activity Capacity 120 600 9,450 1,110 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned
Transcribed Image Text:Approximately Relevant ABC Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Setting up equipment $126,000 Ordering materials 12,600 Machining 103,950 Receiving 24,420 Silven produces two models of cell phones with the following expected activity demands: Model X Model Y 5,500 V Units completed Number of setups Number of orders Machine hours Receiving hours Required: 80 200 5,400 370 Model X Model Y Activity Driver Number of setups Number of orders Machine hours Receiving hours 11,000 40 400 4,050 740 Activity Capacity 120 600 9,450 1,110 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned
2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. Round interim calculations to two decimal places and round your final answers to the nearest dollar. Total Overhead Assigned $ Model X Model Y 3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places. Model X Model Y Percentage Error % %
Transcribed Image Text:2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. Round interim calculations to two decimal places and round your final answers to the nearest dollar. Total Overhead Assigned $ Model X Model Y 3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places. Model X Model Y Percentage Error % %
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