Question Content Area A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine Setups 15 45 $9,600 Assembly Parts 3,000 3,000 144,600 Packaging Pieces 750 600 82,350 Machine Hours per Unit 4 3 Production Volume 750 1,500 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $fill in the blank 1 $fill in the blank 2 B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $fill in the blank 3 $fill in the blank 4
Question Content Area A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine Setups 15 45 $9,600 Assembly Parts 3,000 3,000 144,600 Packaging Pieces 750 600 82,350 Machine Hours per Unit 4 3 Production Volume 750 1,500 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $fill in the blank 1 $fill in the blank 2 B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $fill in the blank 3 $fill in the blank 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question Content Area
A company has traditionally allocated its
overhead based on machine hours but had collected this information to change to activity-based costing:Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine Setups 15 45 $9,600 Assembly Parts 3,000 3,000 144,600 Packaging Pieces 750 600 82,350 Machine Hours per Unit 4 3 Production Volume 750 1,500
A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places.
Product 1 Product 2 Allocation per unit $fill in the blank 1 $fill in the blank 2 B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places.
Product 1 Product 2 Allocation per unit $fill in the blank 3 $fill in the blank 4
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