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Lurrent Attempt in Progress Bonita Visuals produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Department Activity Pool Costs Cost Driver Binding $288,750 Number of units Printing 781,000 Machine hours Product design 264,000 Change orders General 1,066,250 None Total overhead costs $2,400,000 Other information is as follows: Tablets Books 62,500 20,000 Units $3.00 $10.00 Direct materials cost per unit Diroct labor cost norunit Gress marain-ISalos Coct/Salos Ready FI0 FB

Lurrent Attempt in Progress Bonita Visuals produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Department Activity Pool Costs Cost Driver Binding $288,750 Number of units Printing 781,000 Machine hours Product design 264,000 Change orders General 1,066,250 None Total overhead costs $2,400,000 Other information is as follows: Tablets Books 62,500 20,000 Units $3.00 $10.00 Direct materials cost per unit Diroct labor cost norunit Gress marain-ISalos Coct/Salos Ready FI0 FB

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need help calculating predetermined OH rate for this in the answer of dollars next to DLH
Lurrent Attempt in Progress Bonita Visuals produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Department Activity Pool Costs Cost Driver Binding $288,750 Number of units Printing 781,000 Machine hours Product design 264,000 Change orders General 1,066,250 None Total overhead costs $2,400,000 Other information is as follows: Tablets Books 62,500 20,000 Units $3.00 $10.00 Direct materials cost per unit Diroct labor cost nor unit Gress marain-ISalos Cost/sales Ready FI0 FB
Transcribed Image Text:Lurrent Attempt in Progress Bonita Visuals produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Department Activity Pool Costs Cost Driver Binding $288,750 Number of units Printing 781,000 Machine hours Product design 264,000 Change orders General 1,066,250 None Total overhead costs $2,400,000 Other information is as follows: Tablets Books 62,500 20,000 Units $3.00 $10.00 Direct materials cost per unit Diroct labor cost nor unit Gress marain-ISalos Cost/sales Ready FI0 FB
Machine hours Product design 264,000 Change orders General 1,066,250 None Total overhead costs $2,400,000 Other information is as follows: Tablets Books Units 62500 20,000 Direct materials cost per unit $3.00 $10.00 Direct labor cost per unit $4.00 $8.00 Direct labor hours 30,000 18,000 Machine hours 140,000 144,000 Change orders 2,000 2,400 (a)(i) Ready Gress margin-ISalos Coctl/Sales F8 F5
Transcribed Image Text:Machine hours Product design 264,000 Change orders General 1,066,250 None Total overhead costs $2,400,000 Other information is as follows: Tablets Books Units 62500 20,000 Direct materials cost per unit $3.00 $10.00 Direct labor cost per unit $4.00 $8.00 Direct labor hours 30,000 18,000 Machine hours 140,000 144,000 Change orders 2,000 2,400 (a)(i) Ready Gress margin-ISalos Coctl/Sales F8 F5
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