Rockaway Company Produces Two Types of Product,flat and Round,on the Same

question 20

Essay

Rockaway Company produces two types of product,flat and round,on the same production line.For the current period,the company reports the following data. Rockaway's controller wishes to apply activity-based costing (ABC)to allocate the $60,000 of overhead costs incurred by the two product lines to see whether cost per unit would change markedly from that reported above.She has collected the following information. She has also collected the following information about the cost drivers for each category (cost pool)and the amount of each driver used by the two product lines. Assign these three overhead cost pools to flat using ABC and determine average cost per unit for the product.(Round your answer to 2 decimal places. )

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Definitions:

Sum of Squares

A measure used in statistical analysis to quantify the variation or dispersion of a set of numbers.

Tukey Multiple Comparison

A statistical test used to find means that are significantly different from each other.

Pairwise Means

It involves the comparison of means from two groups at a time, often used in statistical methods to identify significant differences between groups.

One-Way ANOVA

A statistical technique used to compare the means of three or more samples using variance to understand if at least one of the means is significantly different from the others.