Question:
Hayward Industries manufactures dining chairs and tables. The following information is available:
Hayward is considering switching from one overhead rate based on labor hours to activity-based costing.
Perform the following analyses for these two components of overhead:
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Dining Chairs
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Tables
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Total Cost
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Machine setups
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200
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600
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$48,000
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Inspections
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250
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470
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$72,000
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Labor hours
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2,600
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2,400
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Compute total machine setups and inspection costs assigned to each product, using a single overhead rate.
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Total Costs
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Dining chairs
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$
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Tables
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$
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Compute total machine setups and inspection costs assigned to each product, using activity-based costing.
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|
|
Total Costs
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Dining chairs
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$
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Tables
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$
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