How much overhead is applied to each product?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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am.203.

Custom's makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000
in overhead, and inspection, with $25,000 in overhead. Poly is estimated to have 750,000 setups and 170,000
inspections, while silk has 250,000 setups and 80,000 inspections. How much overhead is applied to each product?
Transcribed Image Text:Custom's makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with $25,000 in overhead. Poly is estimated to have 750,000 setups and 170,000 inspections, while silk has 250,000 setups and 80,000 inspections. How much overhead is applied to each product?
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