Posted: March 26th, 2021
The controller for Wolfe Machining has established the following overhead cost pools and cost drivers:
Order no. 715 has the following production requirements:
Machine setups: 7 Raw material: 11,200 units
Inspections: 16 Machine hours: 850
a. Compute the total overhead that should be assigned to order no. 715 by using activity-based costing.
b. Suppose that Wolfe were to use a single, predetermined overhead rate based on machine hours. Compute the rate per hour and the total overhead assigned to order no. 715.
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