Swifty, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats. Activity Cost Pools Sizing and cutting Stitching and trimming Wrapping and packing Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools. (Round answers to 2 decimal places, e.g. 12.25.) Sizing and cutting Stitching and trimming Estimated Estimated Use of Overhead Cost Drivers per Activity $3,952,500 150,000 machine hours 1,398,750 75,000 labor hours 300,000 30,000 finished units Wrapping and packing $ Activity-based overhead rates per machine hour per labor hour per finished unit
Swifty, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats. Activity Cost Pools Sizing and cutting Stitching and trimming Wrapping and packing Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools. (Round answers to 2 decimal places, e.g. 12.25.) Sizing and cutting Stitching and trimming Estimated Estimated Use of Overhead Cost Drivers per Activity $3,952,500 150,000 machine hours 1,398,750 75,000 labor hours 300,000 30,000 finished units Wrapping and packing $ Activity-based overhead rates per machine hour per labor hour per finished unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Swifty, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats.
Estimated
Overhead
$3,952,500
150,000 machine hours
1,398,750
75,000 labor hours
300,000 30,000 finished units
Activity Cost Pools
Sizing and cutting
Stitching and trimming
Wrapping and packing
Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools. (Round answers to 2
decimal places, eg. 12.25.)
Sizing and cutting
Stitching and trimming
Wrapping and packing
$
Estimated Use of
Cost Drivers per Activity
20
Activity-based overhead rates
per machine hour
per labor hour
per finished unit
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