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 to two decimal places. Brass Gold 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. Brass Allocation Rate per Unit Gold Allocation Rate per Unit

Principles of Accounting Volume 2
19th Edition
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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:
Gold
Units Planed
Material Moves
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.
Brass
Gold
Brass
A. Calculate the allocation rate per unit of brass and per unit of gold using the traditional method? Round intermediate calculations and final answers to
two decimal places.
Brass
750
150
400 100
Gold
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
Allocation Rate
per Unit
$
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: Gold Units Planed Material Moves 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. Brass Gold Brass A. Calculate the allocation rate per unit of brass and per unit of gold using the traditional method? Round intermediate calculations and final answers to two decimal places. Brass 750 150 400 100 Gold 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 Allocation Rate per Unit $
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