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Author Question: Clover Manufacturing Company makes two products. Using the traditional allocation method, the ... (Read 9 times)

jlbond23

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Clover Manufacturing Company makes two products. Using the traditional allocation method, the company has allocated overhead based on estimated total direct labor cost of $125,000. Clover recently implemented an activity-based costing system and had determined that overhead can be broken into three overhead pools: cutting, machine setups, and shipping. The following is a summary of company information:

Estimated CostEstimated Activities
Cutting$  24,000500 cuts
Machine setups    8,000200 machine hours
Shipping   20,00040,000 shipments
$52,000

Required:

a.Calculate the company's overhead rate as a percentage of direct labor cost.
b.Calculate the company's overhead rates using the activity-based costing pools.


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Marked as best answer by jlbond23 on Feb 5, 2023

bigboya

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jlbond23

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Reply 2 on: Feb 5, 2023
Gracias!


lkanara2

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

 

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