Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC: Brass Gold Units Planed 750 150 Material Moves 400 100 Machine Setups 500 750 Direct Labor Hours 600 1,100 The estimated overhead for the material cost pool is estimated as $13,000, and the estimate for the machine setup pool is $40,000. A. Calculate the allocation rate per unit of brass and per unit of gold using the traditional method? Round intermediate calculations and final answers t two decimal places. Brass Gold Allocation Rate per Unit Brass Gold 24.94 228.63 B. Calculate the allocation rate per unit of brass and per unit of gold using the activity-based costing method? Round intermediate calculations and final answers to two decimal places. Allocation Rate per Unit 35.2 177.33

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
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Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC:
Brass Gold
Units Planed
750 150
Material Moves
400 100
Machine Setups
500 750
Direct Labor Hours 600 1,100
The estimated overhead for the material cost pool is estimated as $13,000, and the estimate for the machine setup pool is $40,000.
A. Calculate the allocation rate per unit of brass and per unit of gold using the traditional method? Round intermediate calculations and final answers t
two decimal places.
Brass
24.94
228.63
B. Calculate the allocation rate per unit of brass and per unit of gold using the activity-based costing method? Round intermediate calculations and final
answers to two decimal places.
Gold
Brass
Allocation Rate
per Unit
Gold
Allocation Rate
per Unit
SA
35.2
177.33
Transcribed Image Text:Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC: Brass Gold Units Planed 750 150 Material Moves 400 100 Machine Setups 500 750 Direct Labor Hours 600 1,100 The estimated overhead for the material cost pool is estimated as $13,000, and the estimate for the machine setup pool is $40,000. A. Calculate the allocation rate per unit of brass and per unit of gold using the traditional method? Round intermediate calculations and final answers t two decimal places. Brass 24.94 228.63 B. Calculate the allocation rate per unit of brass and per unit of gold using the activity-based costing method? Round intermediate calculations and final answers to two decimal places. Gold Brass Allocation Rate per Unit Gold Allocation Rate per Unit SA 35.2 177.33
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