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Bibing Kah Ltd has estimated that they will incur $285,050 overhead cost next year. The company uses activity based costing to allocate OVH to each

Bibing Kah Ltd has estimated that they will incur $285,050 overhead cost next year. The company uses activity based costing to allocate OVH to each job. Here is the breakdown per activity:

Activities Estimated MOH Estimated Bases Allocation Base
Procurement $ 300.00 10 PO # of purchase orders
Machine setup $ 7,000.00 35 Setups # of setups
Insertion of parts $ 112,000.00 4,000 parts # of parts
Finishing $ 150,000.00 2,500 DL hours # of finished DL hours
Shipments $ 15,000.00 10 shipments # of shipments
Invoicing $ 750.00 10 Invoices # of completed invoices
Total $ 285,050.00

Calculate the pre determined rate for each activity

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