A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $48,294 and the cost drivers for Product 1 is 209 and 264 for Product 2. The assembling activity pool has estimated costs of $49,150 and the cost drivers for Product 1 is 458 and 156 for Product 2. Direct labor hours for Product 1 is 50,000 and 45,000 for Product 2. What is the manufacturing overhead rate to be used under activity based costing for the assembly pool? Round your final answer to two decimal places and do not write a dollar sign.

A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $48,294 and the cost drivers for Product 1 is 209 and 264 for Product 2. The assembling activity pool has estimated costs of $49,150 and the cost drivers for Product 1 is 458 and 156 for Product 2. Direct labor hours for Product 1 is 50,000 and 45,000 for Product 2. What is the manufacturing overhead rate to be used under activity based costing for the assembly pool? Round your final answer to two decimal places and do not write a dollar sign.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...

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