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Exercise 172 Hayward Industries manufactures dining chairs and tables. The following information is available: Dining Chairs Tables Total Cost Machine setups 200 600 $48,000 Inspections 250 470 $72,000 Labor hours



Question
Exercise 172 Hayward Industries manufactures dining chairs and tables. The following information is available:

Dining ChairsTablesTotal Cost
Machine setups200600$48,000
Inspections250470$72,000
Labor hours2,6002,400

Hayward is considering switching from one overhead rate based on labor hours to activity-based costing.

Perform the following analyses for these two components of overhead:

Compute total machine setups and inspection costs assigned to each product, using a single overhead rate.

Total Costs
Dining chairs$
Tables$


Compute total machine setups and inspection costs assigned to each product, using activity-based costing.

Total Costs
Dining chairs$
Tables$

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