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Author Question: Angora, Inc. uses activity-based costing to cost its two products: Standard and Deluxe. The company ... (Read 83 times)

kled

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on: Feb 5, 2023
Angora, Inc. uses activity-based costing to cost its two products: Standard and Deluxe. The company has provided the following data relating to its activities:

Cost PoolsEstimated Cost
Machine (machine-hours)$144,000
Cutting (number of cuts)536,000
Sales (number of orders)108,000


​​Estimated Activity
StandardDeluxe
Machine hours1,0007,000
Number of cuts3,0005,000
Number of orders7,0002,000

Required:

a.What is the activity rate for the cutting cost pool?
b.If actual activity is the same as that estimated, what is the total amount of overhead
cost
allocated to the Standard product?
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by kled on Feb 5, 2023

DevinBrifm

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Reply #1 on: Feb 5, 2023
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kled

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Reply 2 on: Feb 5, 2023
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