Question 10 Shane's Cookware Company has three cost pools and overhead estimates are as follows: Activity Cost Pool Cost Driver Estimated OH Cost Setups Number of parts Machine hours Machine setups Assembly Machine maintenance A. Compute the OH allocation using the traditional allocation method for product A: 360,000 420,000 500,000 Use per Product A 8,000 20,000 9,000 (Hint: For the traditional method, use machine hours as the allocation base.) B. Compute the OH allocation using the traditional allocation method for product B: (Hint: For the traditional method, use machine hours as the allocation base.) Use per Product B 4,000 36,000 41,000
Question 10 Shane's Cookware Company has three cost pools and overhead estimates are as follows: Activity Cost Pool Cost Driver Estimated OH Cost Setups Number of parts Machine hours Machine setups Assembly Machine maintenance A. Compute the OH allocation using the traditional allocation method for product A: 360,000 420,000 500,000 Use per Product A 8,000 20,000 9,000 (Hint: For the traditional method, use machine hours as the allocation base.) B. Compute the OH allocation using the traditional allocation method for product B: (Hint: For the traditional method, use machine hours as the allocation base.) Use per Product B 4,000 36,000 41,000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Question 10
Shane's Cookware Company has three cost pools and overhead estimates are as follows:
Use per
Product A
8,000
20,000
9,000
A. Compute the OH allocation using the traditional allocation method for product A:
Activity Cost Pool
Machine setups
Assembly
Machine maintenance
Cost Driver
Setups
Number of parts
Machine hours
Estimated
OH Cost
360,000
420,000
500,000
(Hint: For the traditional method, use machine hours as the allocation base.)
B. Compute the OH allocation using the traditional allocation method for product B:
(Hint: For the traditional method, use machine hours as the allocation base.)
Use per
Product B
4,000
36,000
41,000
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