Compute total machine setups and inspection costs

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Exercise- Hayward Industries manufactures dining chairs and tables. The following information is available:

Dining Chairs Tables Total Cost
Machine setups 200 600 $48,000
Inspections 250 470 $72,000
Labor hours 2,600 2,400

Hayward is considering switching from one overhead rate based on labor hours to activity-based costing.

Perform the following analyses for these two components of overhead:

Compute total machine setups and inspection costs assigned to each product, using a single overhead rate.

Compute total machine setups and inspection costs assigned to each product, using activity-based costing.

Reference no: EM131755700

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