Calculate the allocation rates for each of the activity

Reference no: EM13451997

Alliance Company manufactures two products (brushes and combs). The overhead costs have been divided into four cost pools that use the following activity drivers.

	# of Setups	# of Orders	Machine Hours	Packing Orders
Brushes	30	35	2,000	100
Combs	10	65	6,000	150
Cost per Pool	$20,000	$10,000	$280,000	$60,000

Required

Compute the allocation rates for each of the activity drivers listed.
Allocate the overhead costs to Products S and T using activity-based costing.
Compute the overhead rate using machine hours under the functional-based costing system.
Allocate the overhead costs to Products S and T using the functional-based costing system overhead rate calculated in part (c).

Reference no: EM13451997

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Calculate the allocation rates for each of the activity

Reference no: EM13451997

Reference no: EM13451997

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