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Aliocate overhead using a single plantwide rate, multiple department rates, and activity-based costing Big Sound...

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Accounting

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Aliocate overhead using a single plantwide rate, multiple department rates, and activity-based costing Big Sound Inc. manufactures two products: receivers and loudspeakers. The factory overhead incurred is as follows: The activity base associated with the two production departments is direct fobor hours. The indirect labor can be assigned to two different activities as The activity-base usage quantikies and units produced for the two products follow: The activity-base usage quantities and units produced for the two products follow: Required: 1. Determine a plantwide overhead rate based upon direct labor hours. Direct labor overhead rate: X per direct labor hour 2. Determine the total and per-unit factory overhead costs allocated to each product, using the plantwide overhead rate in (1). Round per cent. 3. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the total factory overhead is $420,000 and $294,000 for the Subassembly and Final Assembly departments, respectively

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