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    Activity-based overhead rates

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    I have a problem that I need help with. I need to compute the activity-based overhead rates for 4 cost pools.

    Stereo City Co. manufactures speakers and receivers and uses activity-based costing. The following information is available:
    Instructions: Compute the activity-based overhead rates.
    Expected Use of Cost Driver
    Per Activity
    Activity Cost Pool Estimated Overhead
    Ordering $180,000 24,000 orders
    Soldering 192,000 64,000 machine hours
    Inspecting 894,000 120,000 labor hours
    Packing 873,600 56,000 boxes

    © BrainMass Inc. brainmass.com June 3, 2020, 11:47 pm ad1c9bdddf
    https://brainmass.com/business/accounting/activity-based-overhead-rates-299014

    Solution Preview

    Stereo City Co. manufactures speakers and receivers and uses activity-based costing. The following information is available:
    Instructions: Compute the activity-based overhead rates.
    Expected Use ...

    Solution Summary

    The solution explains how to calculate activity-based overhead rates.

    $2.19

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