Problem - Weber Industries has three activity cost pools and two products. It expects to produce 3,000 units of Product BC113 and 1,400 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Weber accumulated the following data relative to those activity cost pools and cost drivers.
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Annual Overhead Data
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Expected Use of Cost Drivers per Product
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|
Activity Cost Pool
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Cost Driver
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Estimated Overhead
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Expected Use of Cost Drivers per Activity
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Product BC113
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Product AD908
|
|
Machine set-up
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Set-ups
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$21,200
|
40
|
25
|
15
|
|
Machining
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Machine hours
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111,330
|
5,020
|
1,004
|
4,016
|
|
Packing
|
Orders
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29,930
|
500
|
150
|
350
|
Prepare a schedule showing the calculations of the activity-based overhead rates per cost driver.
Prepare a schedule assigning each activity's overhead cost to the two products.
Calculate the overhead cost per unit for each product.