Business, 12.04.2021 22:10 jaidxxxz

Scottsdale Ltd. manufactures a variety of high-volume and low-volume products to customer demand. Presented is information on 2009 manufacturing overhead and activity cost drivers. Level Total Cost Units of Cost Driver
Unit $400,000 20,000 machine hours
Batch 200,000 1,000 customer orders
Product 200,000 50 products

Product X1 required 1,000 machine hours to fill 20 customer orders for a total of 8,000 units.

Required:
a. Assuming all manufacturing overhead is estimated and predicted on the basis of machine hours, determine the predicted total overhead costs to produce the 8,000 units of product X1.
b. Assuming manufacturing overhead is estimated and predicted using separate rates for machine hours. customer orders. and products (a multiple-level cost hierarchy), determine the predicted total overhead costs to produce the 8,000 units of product X1.

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Scottsdale Ltd. manufactures a variety of high-volume and low-volume products to customer demand. Pr...

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