A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $50,754 and the cost drivers for Product 1 is 337 and 214 for Product 2. The assembling activity pool has estimated costs of $47,136 and the cost drivers for Product 1 is 481 and 121 for Product 2. Direct labor hours for Product 1 is 50,000 and 45,000 for Product 2. What is the manufacturing overhead rate to be used under activity based costing for the assembly pool? Round your final answer to two decimal places and do not write a dollar sign.
A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $50,754 and the cost drivers for Product 1 is 337 and 214 for Product 2. The assembling activity pool has estimated costs of $47,136 and the cost drivers for Product 1 is 481 and 121 for Product 2. Direct labor hours for Product 1 is 50,000 and 45,000 for Product 2. What is the manufacturing
The standard amount of factory overhead cost assigned to each unit of production is known as the manufacturing overhead rate.
ABC is a costing method in which an organization's activities are identified and the cost of each activity is assigned to all products and services based on actual consumption. As a result, this model assigns more indirect costs (overhead) to direct costs than traditional costing..
Step by step
Solved in 2 steps
