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podryga [215]
3 years ago
10

EA11.

Business
1 answer:
koban [17]3 years ago
4 0

Answer:

Predetermined rates for each cost pool

Ordering  = <u>$120,000</u>

                    240,000 orders

                = $0.50 per order

Machine set-up = <u>$85,000</u>

                             340,000 set-ups

                          = $0.25 per set-up  

Inspection  = <u>$75,000</u>

                      75,000 inspections

                  = $1 per inspection                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

Explanation:

The predetermined rates are obtained by dividing the estimated                                                                                                                             overhead for each cost pool by the cost driver.                                                                                                                  

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