Custom's makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000
Posted: Sun Jul 03, 2022 1:15 pm
Custom's makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with $25,000 in overhead. Poly is estimated to have 770,000 setups and 190,000 inspections, while silk has 230,000 setups and 60,000 inspections. How much overhead is applied to each product? Activity Setup Inspection Total Rate Applied to Poly $0.10 $ 0.11 Applied to Silk