Question
3. Jason Company manufactures two products: A and B. The overhead costs have been divided into four activity pools that use the following cost
3. Jason Company manufactures two products: A and B. The overhead costs have been divided into four activity pools that use the following cost drivers: Number of Number of Hours of Number of Product Product A Materials Requisitions Machine Machine Setups Operation Product Inspections 12 35 3,000 25 Product B 8 115 1,500 55 Cost per Pool $10,000 $90,000 $135,000 $22,000 Required: a. Compute the unit activity costs for each of the cost drivers listed. b. Assign the overhead costs to products A and B using activity-based costing.
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