Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC:Brass GoldUnits Planed800 125Material Moves400 100Machine Setups400 600Direct Labor Hours 700 1,100The estimated overhead for the material cost pool is estimated as $10,500, and the estimate for the machine setup pool is $36,000.A. Calculate the allocation rate per unit of brass and per unit of gold using the traditional method? Round intermediate calculations and final answers totwo decimal places.BrassGoldB. Calculate the allocation rate per unit of brass and per unit of gold using the activity-based costing method? Round intermediate calculations and finalanswers to two decimal places.BrassAllocation Rateper UnitGoldAllocation Rateper Unit

Answer : Brass Gold Total Material Moves 400 100 500 Machine setup 400 600 1000 Direct…

Answered: 100 600 ,100 the material cost pool is…

100 600 ,100 the material cost pool is estimated as $10,500, and the estimate for te per unit of brass and per unit of gold using the traditional method

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 11PA: Lampierre makes brass and gold frames. The company computed this information to decide whether to...

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Question

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
800 125
Material Moves
400 100
Machine Setups
400 600
Direct Labor Hours 700 1,100
The estimated overhead for the material cost pool is estimated as $10,500, and the estimate for the machine setup pool is $36,000.
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

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