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 300 75 Machine Setups 300 450 Direct Labor Hours 800 1,100 The estimated overhead for the material cost pool is estimated as $7,500, and the estimate for the machine setup pool is $24,750. 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. Allocation Rate per Unit Brass $ Gold $4 B. Calculate the allocation rate per unit of brass and per unit of gold using the activity-based costing method? Round intermediate calculations and final answers to two decimal places. Allocation Rate per Unit Brass 2$ Gold $4

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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
300
75
Machine Setups
300
450
Direct Labor Hours
800 1,100
The estimated overhead for the material cost pool is
estimated as $7,500, and the estimate for the machine
setup pool is $24,750.
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.
Allocation Rate
per Unit
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.
Allocation Rate
per Unit
Brass
$4
Gold
$
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 300 75 Machine Setups 300 450 Direct Labor Hours 800 1,100 The estimated overhead for the material cost pool is estimated as $7,500, and the estimate for the machine setup pool is $24,750. 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. Allocation Rate per Unit 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. Allocation Rate per Unit Brass $4 Gold $
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