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Question2 - Claire Company produces Tablets and Books....

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Claire Company produces Tablets and Books. Total overhead costs traditionally have beenallocated on the basis of direct labor hours. After implementing activity-based costing, managersdetermined the following cost pools and cost drivers. They also decided that general costs shouldno longer be allocated to products.Activity PoolDepartmentCostsCost DriverBinding$269,568Number of unitsPrinting803,296Machine hoursProduct design183,040Change ordersGeneral633,152NoneTotal overhead costs$1,889,056Other information is as follows:TabletsBooksUnits62,80020,100Direct materials cost per unit$3.09$10.09Direct labor cost per unit$3.93$8.08Direct labor hours25,50016,100Machine hours125,000120,000Change orders1,4003,000Calculate predetermined OH rate.(Round answer to 2 decimal places, e.g. 15.25.)Predetermined OH rate$/DLHDetermine the unit product cost for Tablets and Books using the traditional costing
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Term
Fall
Professor
N/A
Tags
Cost Accounting, unit product cost, Total overhead costs, Tablets and Books

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