BE18-6 Weisman, Inc. Uses activity-based costing as the basis for information to set prices for...
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Accounting
BE18-6
Weisman, Inc. Uses activity-based costing as the basis for information to set prices for six lines of seasonal coats. Compute the activity-based overhead rates using the following budgeted data of each of the activity cost pools.
Estimated Expected Use Of
Activity Cost Pools Overhead Cost Drivers Per Activity
Designing $450,000 10,000 designer hours
Sizing and Cutting $4,000,000 160,000 machine hours
Stitching and Trimming $1,440,000 80,000 labor hours
Wrapping and Packing $336,000 32,000 finished units
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