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Allocating overhead costs among products Tigger Company makes three products in its factory: stuffed bears, stuffed donkeys, and stuffed rabbits. The overhead costs for the
Allocating overhead costs among products
Tigger Company makes three products in its factory: stuffed bears, stuffed donkeys, and stuffed rabbits. The overhead costs for the fiscal year are as follows:
Item Activity Cost Pool Cost driver
Machine setups $200,000 set ups
Quality control $10,000 QC inspections
Utilities and depreciation $350,000 machine hours
Product Rabbits Donkeys Bears
Setups 300 250 450
QC Inspections 60 50 90
Machine Hours 29,175 22,875 35.450
Required:Allocate the overhead costs to the products.
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