Wilkins 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 s

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Direct labor costs $54,900 $112,000
Machine hours 1,360 1,310
Setup hours 97 410

Total estimated overhead costs are $302,200. Overhead cost allocated to the machining activity cost pool is $199,400, and $102,800 is allocated to the machine setup activity cost pool.

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