Activity Cost Pool Est. Cost for the year Activity Cost Driver POHR Act.

Assembly $1,069,344 56400 $18.96

Processing orders $38,820 1500 $25.88

Inspection $102,300 1500 $68.20

Totals $1,210,464

The company makes 280 units of product J71B a year.

920 machine hours

30 orders

16 inspection hours

direct materials $26.90 per unit

direct labor $18 per unit

According to Activity Based Accounting, the total overhead cost for producing 280 units of J71B product is:

$31,732.00

$12,432.00

$14,288.80

$19,300.00

$26,832.00