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Ayayai Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having
Ayayai Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Ayayai accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Use of Cost Drivers per Product Estimated Use of Cost Estimated Drivers per Product Product Activity Cost Pools Cost Drivers Overhead Activity BC113. AD908 Machine setup Setups $14,000 35 20 15 Machining Machine hours 72,000 4,800 1,000 3,800 Packing Orders 22,500 450 100 350 Using the above data, do the following: Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity Cost Estimated Overhead Pools Machine setup Machining Packing Estimated Use of Cost Drivers per Activity setups Activity-Based Overhead Rates per setup per machine hours machine hr. per orders order Prepare a schedule assigning each activity's overhead cost to the two products. BC113 Activity Cost Pools Use of Cost Drivers per Product Activity-Based Overhead Rates Cost Assigned Use of Co Drivers per Pi Machine setup Machining Packing Total assigned costs $ Compute the overhead cost per unit for each product. (Round answers to 2 decimal places, e.g. 12.25.) BC113 Overhead cost per unit AD908
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