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Steven Co. has two products: A and B. The following is information about the assembly activity in its factory: Estimated cost
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Carr Manufacturing makes a product that incurs prime costs of $290,000. Production uses 1,300 setup hours and 2,200 machine h
An important difference between activity-based costing and traditional costing is that under activity-based costing, a activi
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Answer #1

1

Activity Rate =Estimated Cost / Total Activities

=$14800/780

=$18.97

3

Prime Cost $ 2,90,000.00
Overhead
Setups Cost 1300* 80 $ 1,04,000.00
2200 Machine Hour* 81 $ 1,32,000.00
Total Product Cost $ 5,26,000.00

4

d Multiple overhead rates are used

Explanation:under activities based costing overheads rates are calculated for multiple activities and cost are allocated accordingly .

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