Elizabeth, the manager of Sage Hill, is analyzing the company's MOH costs from last year. Sage Hill had always followed an actual costing system when determining the costs of its customizable telescopes. Elizabeth wondered if it would be better to switch to a normal costing system, as she had heard a number of people talking about that at an industry conference she attended the previous month. Since Sage Hill has a highly machine-intensive operation, machine hours are used as its MOH cost driver. Here are the costs and other MOH information Elizabeth is analyzing: Budgeted MOH cost Actual MOH cost Budgeted machine hours Actual machine hours (a) Actual MOH rate Budgeted MOH rate $427,200 Determine the actual MOH rate and the budgeted MOH rate Sage Hill would have used last year under actual costing and normal costing, respectively. (Round answers to 2 decimal places, e.g. 52.75.) $ 420,120 96,000 108,000 /machine hour /machine hour

Elizabeth, the manager of Sage Hill, is analyzing the company's MOH costs from last year. Sage Hill had always followed an actual costing system when determining the costs of its customizable telescopes. Elizabeth wondered if it would be better to switch to a normal costing system, as she had heard a number of people talking about that at an industry conference she attended the previous month. Since Sage Hill has a highly machine-intensive operation, machine hours are used as its MOH cost driver. Here are the costs and other MOH information Elizabeth is analyzing: Budgeted MOH cost Actual MOH cost Budgeted machine hours Actual machine hours (a) Actual MOH rate Budgeted MOH rate $427,200 Determine the actual MOH rate and the budgeted MOH rate Sage Hill would have used last year under actual costing and normal costing, respectively. (Round answers to 2 decimal places, e.g. 52.75.) $ 420,120 96,000 108,000 /machine hour /machine hour

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 22E: Silven Company has identified the following overhead activities, costs, and activity drivers for the...

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