alculate the overhead rate using activity based costing. (Round answers to 2 decimal places, e.g. 12.25.) Overhead rates for activity-based costing   Cutting   $enter a dollar amount per machine hour rounded to 2 decimal places   per machine hour Design   $enter a dollar amount per setup rounded to 2 decimal places   per setup   eTextbook and Media                     Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing.     Wool product line Cotton product line Overhead Allocated   $enter a dollar amount  $enter a dollar amount    eTextbook and Media                     Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rates using the traditional approach   $enter the overhead rate per direct labour hour in dollars rounded to 2 decimal places   per direct labor hour   eTextbook and Media                     What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming direct labor hours were incurred evenly between the wool and cotton?     Wool product line   Cotton product line Overhead Allocated   $enter a dollar amount    $enter a dollar amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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EcoFabrics has budgeted overhead costs of $1,039,500. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 495,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $396,000 and $643,500 is allocated to the design cost pool. Additional information related to these pools is as follows.

   
Wool
 
Cotton
 
Total
Machine hours   110,000   110,000   220,000
Number of setups   1,100   550   1,650
 
 
Calculate the overhead rate using activity based costing. (Round answers to 2 decimal places, e.g. 12.25.)

Overhead rates for activity-based costing  
Cutting  
$enter a dollar amount per machine hour rounded to 2 decimal places 
 per machine hour
Design  
$enter a dollar amount per setup rounded to 2 decimal places 
 per setup
 

eTextbook and Media

 
 
 
 
 
 
 
 
 
 
Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing.

   
Wool product line
Cotton product line
Overhead Allocated  
$enter a dollar amount 
$enter a dollar amount 
 

eTextbook and Media

 
 
 
 
 
 
 
 
 
 
Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, e.g. 12.25.)

Overhead rates using the traditional approach  
$enter the overhead rate per direct labour hour in dollars rounded to 2 decimal places 
 per direct labor hour
 

eTextbook and Media

 
 
 
 
 
 
 
 
 
 
What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming direct labor hours were incurred evenly between the wool and cotton?

   
Wool product line
 
Cotton product line
Overhead Allocated  
$enter a dollar amount 
 
$enter a dollar amount 
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