Schnell suspects that her allocation of indirect costs could be giving misleading results so she...
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Schnell suspects that her allocation of indirect costs could be giving misleading results so she decides to develop an ABC system. She identifies three activities: documentation preparation, information technology support, and training. Schnell figures that documentation costs are driven by the number of pages, information technology support costs are driven by the number of software applications used, and training costs are most closely associated with the number of direct labour hours worked. Estimates of the costs and quantities of the allocation bases follow: Click the icon to view estimates of costs and quantities of the allocation bases. Click the icon to view the background information. Compute the cost allocation rate for each activity. First, determine the formula to compute the allocation rate in an activitybased costing system, then compute the rate. Abbreviations: Est. estimated, Act. actual, qty quantity. Round your answers to the nearest cent. Document. prep. ABC allocation rate Info tech support page application Training hour 
Schnell suspects that her allocation of indirect costs could be giving misleading results so she decides to develop an ABC system. She identifies three activities: documentation preparation, information technology support, and training. Schnell figures that documentation costs are driven by the number of pages, information technology support costs are driven by the number of software applications used, and training costs are most closely associated with the number of direct labour hours worked. Estimates of the costs and quantities of the allocation bases follow:
Click the icon to view estimates of costs and quantities of the allocation bases.
Click the icon to view the background information.
Compute the cost allocation rate for each activity.
First, determine the formula to compute the allocation rate in an activitybased costing system, then compute the rate. Abbreviations: Est. estimated, Act. actual, qty quantity. Round your answers to the nearest cent.
Document. prep.
ABC allocation rate
Info tech support page application Training hour
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