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Acme Company uses an activity-based costing system to apply…
Acme Cоmpаny uses аn аctivity-based cоsting system tо apply manufacturing overhead to jobs. The estimated total annual overhead cost of $1,150,000 is divided into three cost pools, as follows: Setup costs - The allocation rate is $60 per setup, based on an estimated total number of setups of 3,200. Assembly costs - The allocation rate is $28 per machine hour. Packaging costs - Total costs are $258,000, the cost driver is units packaged, and the estimated total number of units packaged is 20,000. If Acme used a single overhead rate based on machine hours rather than an activity-based costing system, what would be the plantwide overhead rate?
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