Exercise 17-3 ecofabrics has budgeted overhead costs of $1,011,150. it has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 481,500 for the current year. the company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. these two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). overhead allocated to the cutting cost pool is $385,200 and $625,950 is allocated to the design cost pool. additional information related to these pools is as follows. wool cotton total machine hours 107,000 107,000 214,000 number of setups 1,070 535 1,605 calculate the overhead rate using activity based costing. (round answers to 2 decimal places, e. g. 12.25.) overhead rates for activity-based costing cutting $ per machine hour design $ per setup

Garden variety flower shop uses 584 clay pots a month. the annual cost to hold a single pot in inventory for a year is $5. the cost to arrange for another order of pots is $180. if the flower shop orders pots in order to minimize their annual ordering and holding costs, what will their annual ordering and holding costs be

Manyops, inc., is a manufacturing firm that has experienced strong competition in its traditional business. management is considering joining the trend to the "service economy" by eliminating its manufacturing operations and concentrating on providing specialized maintenance services to other manufacturers. management of manyops, inc., has had a target roi of 17% on an asset base that has averaged $8 million. to achieve this roi, average total asset turnover of 3 was required. if the company shifts its operations from manufacturing to providing maintenance services, it is estimated that average total assets will decrease to $2 million. required: a. calculate net income, margin, and sales required for manyops, inc., to achieve its target roi as a manufacturing firm. (enter your "sales" and "net income" answers in millions (i.e., 10,000,000 should be entered as 10). do not round intermediate calculations. round your answers to 2 decimal places.)

Gino's restaurant is a popular restaurant in boston, massachusetts. the owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. the intern, in consultation with the owner, identified the following major activities: activity cost pool activity measure serving a party of diners number of parties served serving a diner number of diners served serving drinks number of drinks ordered some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. other costs, such as washing plates and glasses, depends on the number of diners served or the number of drinks served. data concerning these activities are shown below. serving a party serving a dinner serving drinks total total cost $47,600 $153,000 $59,800 $260,400 total activity 7,000 parties 30,000 diners 46,000 drinks prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. she knew that the total cost for the month was $260,400 and that 30,000 diners had been served. therefore, the average cost per diner was $8.68.required: 1. compute the activity rates for each of the three activities 2. according to the activity-based costing system, what is the total cost of serving each of the following parties of diners? a. a party of four diners who ordered three drinks in total b. a party of two diners who do not order any drinks c. a lone diner who orders two drinks 3. convert the total costs you computed in part (1) above to costs per diner. in other words, what is the average cost per diner for serving each of the following parties: a. a party of four diners who order three drinks in total b. a party of two diner who do not order any drinks c. a lone diner who orders two drinks 4. why do the costs per diner for the three different parties differ from each other and from the overall average coast of $9.80 per diner?