Question
Activity Cost Pool Activity Measure Estimated Expected Activity Overhead Cost Machine related Machine Hours $90,000 5,000 Mhs Purchase orders Number of orders $126,000 2,800
Activity Cost Pool Activity Measure Estimated Expected Activity Overhead Cost Machine related Machine Hours $90,000 5,000 Mhs Purchase orders Number of orders $126,000 2,800 orders Machine setups Number of Setups $200,000 10,000 setups Number of labor hrs $60,000 General factory 4,000 Dlhs Manufacturing overhead cost was applied to production. Actual activity during the year was as follows: Activity Cost Pool Machine related Purchase orders Machine setups General factory Actual Activity 10,500 Mhs 800 orders 1,500 setups 8,000 Dlhs It is expected that the company will produce 62,500 units. a) Compute the activity rate for each activity. b) Compute the per unit cost for overhead
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