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at capacity. Data related to the two products follows. Click the icon to view the data.) 1. Choose a cost driver for each overhead cost
at capacity. Data related to the two products follows. Click the icon to view the data.) 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. 2. Compute the manufacturing cost per unit for each product. 3. How might McCabe's managers use the new cost information from its activity-based costing system to better manage its business? Total manufacturing overhead costs are: (Click the icon to view the overhead costs.) Requirement 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. Begin by choosing a cost driver for each overhead cost pool. Activity Cost driver Rate Machining Set up Inspection Determine the formula to calculate the overhead allocated to each product. x Overhead allocated to product Now calculate the total overhead allocated to each product and the overhead cost per unit. (Round your swer to the nearest cent.) Mathematical Financial Machining costs Setup costs Choose from any list or enter any number in the input fields and then continue to the next question. Annual production in units Direct materials cost Direct manufacturing labor cost Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours Mathematical Financial 100,000 200,000 $ 300,000 $ 600,000 $ 100,000 $ 200,000 5,000 10,000 25,000 50,000 100 100 700 300 Total $ Machining costs Setup costs Inspection costs 450,000 120,000 100,000 Requirement 3. How might McCabe's managers use the new cost information from its activity-based costing system to better manage its business? apply.) A. Managers can use this information for design decisions, and to plan and manage activities. B. Managers can use this information for pricing and product-mix decisions, and for cost reduction and process-improvement decisions. C. Managers can use this information to devise employee compensation packages. D. Managers can use this information to improve advertising campaigns and their public image
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