Solution-How the conventional overhead cost assignments

How the conventional overhead cost assignments would differ

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Reference no: EM131896331

Using the ABC data, determine the total amount of overhead cost assigned to each product.

Activity Cost Pool	Product A	Product B	Product C	Product D
Labor-related (DLHs) ........................	503	100	700	703
Purchase orders (orders) .....................	80	105	180	160
Product testing (tests)................................	200	60	0	90
Template etching (templates) . ...............	0	14	10	4
General tactccy ( hiHs) ...........................................................................................................	3,400	2,200	1,800	2.600

Assume that prior to implementing ABC, Rusties used a conventional cost system that applied all manufacturing overhead to products based on direct labor-hours. Explain how the conventional overhead cost assignments would differ from the activity-based cost assignments with respect to Product B.

Reference no: EM131896331

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How the conventional overhead cost assignments would differ

Reference no: EM131896331

Reference no: EM131896331

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