Novak Industries manufactures dining chairs and tables. The following information is available regarding the two products and their estimated use of cost drivers: Machine setups Inspections Labor hours Dining Chairs (a) 255 305 Dining chairs $ Tables 2,600 Tables Estimated Cost Novak is considering switching from one overhead rate based on labor hours to ABC. $ Perform the following analyses for these two components of overhead: 655 525 2,400 Compute total machine setups and inspection costs assigned to each product, using a single overhead rate. (Round overhead rate value to 3 decimal places, e.g. 52.711 and final answers to 0 decimal places, e.g. 5,275.) $49,140 $73,040 Total Costs

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Novak Industries manufactures dining chairs and tables. The following information is available regarding the two products and their estimated use of cost drivers:
Machine setups
Inspections
Labor hours
(a)
Dining Chairs
Dining chairs
255
Tables
305
Tables Estimated Cost
$
Novak is considering switching from one overhead rate based on labor hours to ABC.
655
Perform the following analyses for these two components of overhead:
525
2,600 2,400
Compute total machine setups and inspection costs assigned to each product, using a single overhead rate. (Round overhead rate value to 3 decimal places, e.g. 52.711 and final
answers to 0 decimal places, e.g. 5,275.)
$49,140
$73,040
Total Costs
Transcribed Image Text:Novak Industries manufactures dining chairs and tables. The following information is available regarding the two products and their estimated use of cost drivers: Machine setups Inspections Labor hours (a) Dining Chairs Dining chairs 255 Tables 305 Tables Estimated Cost $ Novak is considering switching from one overhead rate based on labor hours to ABC. 655 Perform the following analyses for these two components of overhead: 525 2,600 2,400 Compute total machine setups and inspection costs assigned to each product, using a single overhead rate. (Round overhead rate value to 3 decimal places, e.g. 52.711 and final answers to 0 decimal places, e.g. 5,275.) $49,140 $73,040 Total Costs
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