Coronado Machining makes three products. The companys annual budget includes $1,222,500 of overhead. In the...

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Accounting

Coronado Machining makes three products. The companys annual budget includes $1,222,500 of overhead. In the past, the company allocated overhead based on expected capacity of 40,750 direct labor hours. The company recently implemented an activity-based costing system and has determined that overhead costs can be broken into four overhead pools: order processing, setups, milling, and shipping. The following is a summary of company information:

Expected Cost Expected Activities

Order processing

$ 333,000 18,000 orders

Setups

200,900 4,900 setups

Milling

438,600 20,400 machine hours

Shipping

250,000 25,000 shipments
$ 1,222,500

(a)

Calculate the companys traditional overhead rate based on direct labor hours.

(b) Calculate the companys overhead rates for each of the activity-based costing pools. (Round answers to 2 decimal places, e.g. 15.25.)

Order processing

$enter a dollar amount per order rounded to 2 decimal places per order

Setups

$enter a dollar amount per setup rounded to 2 decimal places per setup

Milling

$enter a dollar amount per machine hour rounded to 2 decimal places per machine hour

Shipping

$enter a dollar amount per shipment rounded to 2 decimal places per shipment

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