Q1) Q2) Use the following information to answer the questions below. Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines- $800,000; machining- $2,000,000; and inspecting- $600,000. Information on the two products is: Direct labour hours Machine setups Machine hours Mini A 25,000 400 15,000 600 24,000 Inspections 800 Calculate the overhead rate using the traditional (plant-wide) approach? Calculate the overhead rate using the activity-based costing approach? Maxi B 26,000 700

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Q1)
Q2)
Use the following information to answer the questions below.
Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of
setting up machines- $800,000; machining- $2,000,000; and inspecting- 5600,000. Information on the two
products is:
Direct labour hours
Machine setups
Machine hours
Mini A
25,000
400
15,000
600
24,000
Inspections
800
Calculate the overhead rate using the traditional (plant-wide) approach?
Calculate the overhead rate using the activity-based costing approach?
Maxi B
26,000
700
Transcribed Image Text:Q1) Q2) Use the following information to answer the questions below. Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines- $800,000; machining- $2,000,000; and inspecting- 5600,000. Information on the two products is: Direct labour hours Machine setups Machine hours Mini A 25,000 400 15,000 600 24,000 Inspections 800 Calculate the overhead rate using the traditional (plant-wide) approach? Calculate the overhead rate using the activity-based costing approach? Maxi B 26,000 700
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