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1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. (Click the icon to
1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. (Click the icon to view the data.) Compute the manufacturing cost per unit for each product. How might Neylon's managers use the new cost information from its activity-based costing system to better manage its business? 2. Total manufacturing overhead costs are: 3. Total Machining costs 360,000 Data Table Setup costs 108,000 Inspection costs 117,000 Mathematical Financial Requirement 1. Choose a cost driver for each overhead cost pool and calculate the manufa Annual production in units 45,000 90,000 Begin by choosing a cost driver for each overhead cost pool. Direct materials cost 2$ 180,000 $ 360,000 Activity Cost driver Rate Direct manufacturing labor cost 90,000 $ 180,000 Machining 9,000 Direct manufacturing labor-hours 4,500 Set up 60,000 Machine-hours 30,000 Number of production runs Inspection 45 45 Inspection hours 1,200 600 Print Done
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