In manufacturing rollerblades, sparkles Company's plant used 360 direct labor hours, 450 machine hours, and...
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Accounting
In manufacturing rollerblades, sparkles Company's plant used 360 direct labor hours, 450 machine hours, and 23 setups. The following overhead costs were taken from the factory accounts: Overhead expenses: Volume of activities: Machining Center $175,000 25,000 machine hours Setup Center 66,000 100 setups Total $241,000 5,000 direct labor hours The plant was using a factory-wide overhead rate based on direct labor hours.
A new ABC system will use machine hours in the Machining Center and number of setups in the Setup Center as cost drivers. By what amount would the amount of overhead costs assigned to footballs differ between the prior system and the ABC system? $_______________________
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