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View Policies Current Attempt in Progress Sheridan, Inc. produces two types of gas grills: a family model and a deluxe model. Sheridan's controller has decided to use a plantwide overhead rate based on direct labor costs. The president of the company recently heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the confpany's operations: Family Model Deluxe Model $76,500 $153,000 Direct labor costs Machine hours Setup hours 2.000 2,000 200 800 Total estimated overhead costs are $459,000. Overhead cost allocated to the machining activity cost pool is $275,400 and $183,600 is allocated to the machine setup activity cost pool.
(b) Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, e.g. 15.25.) Overhead Rate Machining $ per hour Machine set up $ per hour Save for Later Attempts:0 of 1 used Submit Answer