mom-m a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based...
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mom-m a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $765.000 of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and z Estimated Overhead Expected Activity Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Cost Activity Cost Pool Machining Machine setups Product design General factory 231,0 11,000 MHS 180,000 s 94,e00 300 setups 2 products s 260,000 13,200 DLHs Activity MeasureProduct Y Product Z Machine-hours Number of setups Number of product:s Direct labor-hours 8,600 60 3,000 240 7,800 6,200
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