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The Controller for Ocean Sailboats Inc

question 133

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The controller for Ocean Sailboats Inc., a company which uses an automated process to make sailboats, established the following overhead cost pools and cost drivers: The controller for Ocean Sailboats Inc., a company which uses an automated process to make sailboats, established the following overhead cost pools and cost drivers:   A recent order for sailboats used:   Required: 1. What is the overhead rate per machine hour if the number of machine hours is used as a single cost driver under traditional costing system? 2. Utilizing traditional costing, how much overhead is assigned to the order based on machine hours as a single cost driver? 3. Utilizing ABC, how much total overhead is assigned to the order? A recent order for sailboats used: The controller for Ocean Sailboats Inc., a company which uses an automated process to make sailboats, established the following overhead cost pools and cost drivers:   A recent order for sailboats used:   Required: 1. What is the overhead rate per machine hour if the number of machine hours is used as a single cost driver under traditional costing system? 2. Utilizing traditional costing, how much overhead is assigned to the order based on machine hours as a single cost driver? 3. Utilizing ABC, how much total overhead is assigned to the order? Required:
1. What is the overhead rate per machine hour if the number of machine hours is used as a single cost driver under traditional costing system?
2. Utilizing traditional costing, how much overhead is assigned to the order based on machine hours as a single cost driver?
3. Utilizing ABC, how much total overhead is assigned to the order?


Definitions:

Fundamental Attribution Error

The bias of attributing others' actions to their character rather than to situational factors.

Observers

Individuals who watch or notice something or someone, commonly used in the context of scientific research or social studies.

Situational Causes

Refers to factors or conditions within a context that influence events or outcomes.

Personal Causes

Individual factors or motivations that drive a person's actions, behaviors, or decisions, reflecting their personal values and goals.

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