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# Volume based costing vs ABC

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I have attached the problem (5-48). I do not need the answers on the attachment but the two below.

1. Utilizing ABC, how much overhead is assigned to the order for men's razors?
2. Utilizing ABC, how much overhead is assigned to the order for women's razors?

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#### Solution Preview

In calculating, how much overhead to be assigned, we first find the application rate. Multiply the application rate by the activity volume to get the amount of overhead.

Application rate = Total overhead/Total activity
We first find the application rate

1. Machine Depreciation/Maintenance - The total cost is \$135,000 and the total activity is 27,000 machine ...

#### Solution Summary

The posting has solution to problem 5-48 relating to volume based costing and ABC for Hairless Company

\$2.49