Compute the ABC rates based on the
following information:
Activity Cost
Pool
(a)
Estimated
Overhead
Cost
(b)
Expected
Activity
Labor
related...........................
$ 5,200
800
DLHs
Machine
related.......................
1,500
2,000
MHs
Machine
setups........................
4,200
100
setups
Production
orders.....................
1,800
50
orders
Product
testing........................
4,800
200
tests
Packaging...............................
7,000
500
packages
General
factory........................
108,800
800
DLHs
Compute the single overall
predetermined overhead rate based entirely on direct
labor-hours:
Compute the cost for completing
100,000 widgets if the direct materials cost was $45,000...