Business
Business, 01.10.2019 20:00, mervindavisk

Julio produces two types of calculator, standard and deluxe. the company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. in preparing for the possible switch, julio has identified two cost pools: materials handling and setup. the collected data follow:

standard delux
number of machine hours 25,700 30,700
number of materials move 585 885
number of set up 85 535

total estimated overhead costs are $313, 020, of which $183, 750 is assigned to the material handling cost pool and $179, 180 is assigned to the setup cost pool.
required:
(1) calculate the overhead assigned to each product using the traditional cost system. (round the overhead rate to four decimal places.)
(2) calculate the overhead assigned to each product using abc.

answer
Answers: 1

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