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ACC 561 Week 4 WileyPLUS Assignment Paper Exercise 17-2
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What is the unit materials cost for May ? What is the unit conversion cost for May ? What is the total cost of units transferred out in May ? What is the cost of the May 31 inventory ?
Exercise 17-1 Saddle Inc . has two types of handbags : standard and custom . The controller has decided to use a plantwide 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 .
Total estimated overhead costs are $ 240,000 . Overhead cost allocated to the machining activity cost pool is $ 140,000 , and $ 100,000 is allocated to the machine setup activity cost pool .
Compute the overhead rate using the traditional ( plantwide ) approach . Compute the overhead rates using the activity-based costing approach . Determine the difference in allocation between the two approaches .
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ACC 561 Week 4 WileyPLUS Assignment Paper Exercise 17-2

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