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Julli [10]
3 years ago
15

Hayward Industries manufactures dining chairs and tables. The following information is available: Dining Chairs Tables Total Cos

t Machine setups 200 600 $48,000 Inspections 250 470 $72,000 Labor hours 2,600 2,400 Hayward is considering switching from one overhead rate based on labor hours to activity-based costing. Perform the following analyses for these two components of overhead: Compute total machine setups and inspection costs assigned to each product, using a single overhead rate.
Business
1 answer:
Anuta_ua [19.1K]3 years ago
4 0

Answer and Explanation:

The computation is shown below:

Single overhead rate is

= total cost ÷ total labor hours

= ($48000 + $72000 ) ÷ (2600+2400)

= 24 per labour hour

Now  

Dining chairs

= 2600 × 24

= $62400

And,

tables

= 2400 × 24

= $57600

total = $120000

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