Acme Inc. applies manufacturing overhead using an ABC system. The total estimated overhead cost for the current year is $4,480,000. Here are selected data regarding the three activity-based allocation rates: Activity Setups Assembly Packaging O $44.80 O $41.60 Estimated costs ? O $48.80 ? $800,000 O $49.60 O None of the above Allocation base Setups Machine hours Units packaged Estimated usage 1,600 setups ? 20,000 units To simplify its job costing system, Acme is thinking about using a single overhead rate with machine hours as the allocation base. If Acme used a single overhead rate based on machine hours rather than an ABC system, what would be the plantwide overhead rate? Allocation rate $300 per setup $32 per machine hour ?

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.