Overhead Applied: Traditional & Activity-Based Costing
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Jasper Co. manufacturers two products, A & B. Jasper Co.'s overhead costs consist of setting up machines, $800,000; machining, $1,800,000, and inspecting, $600,000. See more info below about the products:
A. B.
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Q1. How much overhead is applied to A using traditional cost using direct labor hours?
Q2. How much overhead is applied to B using activity-based costing?
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Solution Summary
This solution provides calculations for the amount of overhead applied to situations regarding traditional and activity-based costing.
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Setting Up Machines - $800,000
Machining - $1,800,000
Inspecting - $600,000
Total = $3,200,000
Q1. How much ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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