Business accounting

Comfort living produces three types of three luggage sets (Carryon, Upright, and Duffel) Carryon Upright Duffel Quantity 8,000 sets 12,000 sets 6,000 sets Selling price $800 per set $ 900 per set $750 per set Direct material $240 per set $500 per set $260 per set and direct labour costs The following were provided on the overhead costs to be assigned to each product Activity Allocation base Total Cost Carryon Upright Duffel Setups Setups $960,000 3200 2,600 2,200 Ordering Orders $192,000 150 130 40 General Machine hours $1,040,000 8,000 12,000 6,000 Overhead Format B I V EVE + . . . Calibri, sans-serif 11pt =122 C 1. Compute the activity rates for each activity. (3 marks) 2. Compute the total amount of overhead to be allocated to each type of luggage. (9 marks) 3. Compute profit per unit for Duffel luggage ( 3 marks) MacBook Air