The following overhead costs are reported for the following activities of the

The following overhead costs are reported for the

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The following overhead costs are reported for the following activities of the production process:Material handling$ 40,000Labor-related overhead120,000Setups60,000Product design100,000Batch inspections120,000Central purchasing70,000Jones manufacturing has used activity based costing to assign costs to Models F and G as given in the table below:ActivityCost PoolDriverPoolRateModel FActivityModel F CostModel G ActivityModel G CostTotalMaterial handling$40,00010,000$44,000$16,0006,000$24,000$40,000Labor related overhead$120,00020,000$68,000$48,00012,000$72,000$120,000Setups$60,00012,000$55,000$25,0007,000$35,000$60,000Product design$100,00020$5,0008$40,00012$60,000$100,000Batch inspections$120,00024,000$510,000$50,00014,000$70,000$120,000Central purchasing$70,00070$1,00030$30,00040$40,000$70,000total$209,000$301,000$510,000
Appleby Manufacturing wants to implement an approximately relevant ABC system by using the two most expensive activities for cost assignment.Refer to Figure 4-21. Under this new approach, what is the new pool rate for batch inspection costs?A. 0B. $5C. $10.625D. $15.525173. Figure 4-21Appleby Manufacturing uses an activity-based costing system. The company produces Model F and Model G. Information relating to the two products is as follows:Model FModel GUnits produced24,00030,000Machine hours7,5008,500Direct labor hours8,00012,000Material handling (number of moves)4,0006,000Setups5,0007,000Purchase orders3040Inspections10,00014,000Product line variations812The following overhead costs are reported for the following activities of the production process:Material handling$ 40,000Labor-related overhead120,000Setups60,000Product design100,000Batch inspections120,000Central purchasing70,000Jones manufacturing has used activity based costing to assign costs to Models F and G as given in the table below:ActivityCost PoolDriverPoolRateModel FActivityModel F CostModel G ActivityModel G CostTotalMaterial handling$40,00010,000$44,000$16,0006,000$24,000$40,000Labor related overhead$120,00020,000$68,000$48,00012,000$72,000$120,000Setups$60,00012,000$55,000$25,0007,000$35,000$60,000Product design$100,00020$5,0008$40,00012$60,000$100,000Batch inspections$120,00024,000$510,000$50,00014,000$70,000$120,000Central purchasing$70,00070$1,00030$30,00040$40,000$70,000total$209,000$301,000$510,000
Appleby Manufacturing wants to implement an approximately relevant ABC system by using the two most expensive activities for cost assignment.Refer to Figure 4-21. Under this new approach using the new rates, what are the overhead costs assigned to Model G in this approximately relevant ABC system?A. $120,000B. $208,250C. $255,000D. $301,750174. Figure 4-21Appleby Manufacturing uses an activity-based costing system. The company produces Model F and Model G. Information relating to the two products is as follows:Model FModel GUnits produced24,00030,000Machine hours7,5008,500Direct labor hours8,00012,000Material handling (number of moves)4,0006,000Setups5,0007,000Purchase orders3040Inspections10,00014,000Product line variations812The following overhead costs are reported for the following activities of the production process:Material handling$ 40,000Labor-related overhead120,000Setups60,000Product design100,000Batch inspections120,000Central purchasing70,000Jones manufacturing has used activity based costing to assign costs to Models F and G as given in the table below:ActivityCost PoolDriverPoolRateModel FActivityModel F CostModel G ActivityModel G CostTotalMaterial handling$40,00010,000$44,000$16,0006,000

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