Business, 01.10.2019 20:00 mervindavisk

Julio produces two types of calculator, standard and deluxe. the company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. in preparing for the possible switch, julio has identified two cost pools: materials handling and setup. the collected data follow:

standard delux
number of machine hours 25,700 30,700
number of materials move 585 885
number of set up 85 535

total estimated overhead costs are $313, 020, of which $183, 750 is assigned to the material handling cost pool and $179, 180 is assigned to the setup cost pool.
required:
(1) calculate the overhead assigned to each product using the traditional cost system. (round the overhead rate to four decimal places.)
(2) calculate the overhead assigned to each product using abc.

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Julio produces two types of calculator, standard and deluxe. the company is currently using a tradit...

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