Mountaineer Tents manufactures and sells heavy and light duty tents to various outdoor retailers.To better estimate costs,the company recently adopted an activity-based costing system.Last year,the company incurred $900 000 in overhead costs.Based on an intense study of their company,the following activities,allocation bases,and percentages of overhead costs were determined:
The number of activities for heavy and light duty tents is as follows:
Required:
A. Calculate the tatal cverhead that should be allacated to each of the three actrities.
B. Calculate the averhead rates for each of the three activities.
C. If a single sales arder requires 10 purchase arders and 30 inspections to fill how much cverhead should be agplied to the order?
Correct Answer:
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