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Tb12162018

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Jones Manufacturing Company makes two products. In the past, the company allocated overhead based on estimated total direct labor hours of 20,000. Jones recently implemented an activity-based costing system and had determined that overhead can be broken into three overhead pools: processed purchase orders, machine setups, and good shipped. The following is a summary of company information:

Estimated CostEstimated Activities
Orders processed$  75,0005,000 orders
Machine setups    12,000500 machine hours
Shipping    30,00060,000 shipments
$117,000

Required:

a.Calculate the company's overhead rate using a single cost pool.
b.Calculate the company's overhead rates using the activity-based costing pools.


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Marked as best answer by Tb12162018 on Feb 5, 2023

Jaclyn92G6

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Tb12162018

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Reply 2 on: Feb 5, 2023
Wow, this really help


xthemafja

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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