Elle inc has two types of handbags standard and custom the

Assignment Help Accounting Basics

Reference no: EM13601204

Elle Inc. has two types of handbags: standard and custom. The controller has decided to use a plant wide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations.

Standard Custom
Direct labor costs $50,000 $100,000
Machine hours 1,000 1,000
Setup hours 100 400

Total estimated overhead costs are $300,000. Overhead cost allocated to the machining activity cost pool is $200,000, and $100,000 is allocated to the machine setup activity cost pool..Compute the overhead rate using the traditional (plant wide) approach. % of direct labor cost.Compute the overhead rates using the activity-based costing approach.

Reference no: EM13601204

Questions Cloud

Janson corporation cos trial balance included the following : janson corporation co.s trial balance included the following account balances at december 31 2013 accounts

Schlag inc expects its sales in january to be 111000 the : schlag inc. expects its sales in january to be 111000. the companys contribution margin ratio is 65 and its fixed

On june 1 royal corp began operating a service company with : on june 1 royal corp. began operating a service company with an initial cash investment by shareholders of 3900000. the

The reasons that explain why some governments make better : the reasons that explain why some governments make better use of the inflows from foreign investment and know-how than

Elle inc has two types of handbags standard and custom the : elle inc. has two types of handbags standard and custom. the controller has decided to use a plant wide overhead rate

British productions performs london shows the avg show : british productions performs london shows. the avg. show sells 1200 tickets at 50ticket. there are 120 shows a year.

Larry and curly are partners who share profits and losses : larry and curly are partners who share profits and losses in a 32 ratio. they agree to let moe into the partnershipfor

In eight years kent duncan will retire he is exploring the : in eight years kent duncan will retire. he is exploring the possibility of opening a self-service car wash. the car

Assume that the managers of fort winston hospital are : assume that the managers of fort winston hospital are setting the price on a new outpatient service. here are relevant

User Account

All Pages