Maurice Tutor

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Category > Accounting Posted 06 Aug 2017 My Price 6.00

Wilkins Inc

Wilkins 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.

    Standard   Custom
Direct labor costs   $57,100   $113,000
Machine hours   1,170   1,370
Setup hours   100   400


Total estimated overhead costs are $309,200. Overhead cost allocated to the machining activity cost pool is $196,000, and $113,200 is allocated to the machine setup activity cost pool.

 

Question:

Compute the overhead rate using the traditional (plantwide) approach.(Round answers to 2 decimal places, e.g. 12.25%.)

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Maurice Tutor
(5)
Status NEW Posted 06 Aug 2017 08:08 PM My Price 6.00

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