My percentages keep coming out wrong even though I am doing it the way they inst

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My percentages keep coming out wrong even though I am doing it the way they instructed please help

WileyPLUS y Asked Questions Contact Us Weygandt, Financial & Managerial Accounting, 2e PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Exercise 18-1 Cha Assignments 18 Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations. Fxcroisc 18-4 Standard Custom Direct labor costs Machine hours Setup hours $50,000 $119,000 1,280 380 1,390 105 Review Score Total estimated overhead costs are $306,000. Overhead cost allocated to the machining activity cost pool is $197,000, and $109,000 is allocated to the machine setup activity cost pool. Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate 181.06 % of direct labor cost LINK TO TEXT LINK TO TEXT SIMILAR E Your answer is partially correct. Try again. Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, e.g. 12.25.) Machining Machine setup 73.78 per machine hour 22.48 per setup hour

Explanation / Answer

Plantwide OH Rate Basis DLC Particulars Standard Custom Total Direct Labor Costs 50000 119000 169000 Machine Hours 1390 1280 2670 Setup Hours 105 380 485 Estimated OH Cost 306000 Activity Cost Pools: Cost Machining Activity 197000 Machine Setup 109000 306000 Plant Wide OH Rate: 1 Estimated OH Cost 306000 Direct Labor Costs 169000 Plantwide OH Rate 181.07% (306000/169000) 2 Activity Based Costing: Activity Cost Pools: Cost Activity Driver Total Driver Cost Per Driver Machining Activity 197000 Machine Hours 2670 73.78 Per MH Machine Setup 109000 Setup Hours 485 224.74 Per Setup 306000 3 Traditional Costing: Standard 90532.5 Custom 215467.5 ABC: Machining Activity Machine Setup Total Allocation Standard 102558.1 23597.9 126156.0 Custom 94441.9 85402.1 179844.0 197000.0 109000.0 306000.0

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