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Question;Exercise 17-1;Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company?s operations.StandardCustomDirect labor costs$58,600$107,000Machine hours1,4801,130Setup hours110430Total estimated overhead costs are $301,600. Overhead cost allocated to the machining activity cost pool is $199,100, and $102,500 is allocated to the machine setup activity cost pool.Warning Don't show me this message again for the assignmentOk Cancel (a);Compute the overhead rate using the traditional (plantwide) approach. (Round answers to 2 decimal places, e.g. 12.25%.)Predetermined overhead rate % of direct labor cost

 

Paper#38972 | Written in 18-Jul-2015

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