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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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