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Calculate the overhead rate per unit of activity for each of the five cost pools. (Round overhead rate for Other Cost Pool to 2 decimal
Calculate the overhead rate per unit of activity for each of the five cost pools. (Round overhead rate for Other Cost Pool to 2 decimal places, e.g. 15.25.,) Cost Pool Materials ordering Materials inspection Equipment setup Quality control Other Overhead rate per order per receiving report per setup per inspection per labor cost The Kokomo Shoppe is a national bakery that is known for its strawberry cheesecake. It makes 12 different kinds of cheesecake as well as many other types of bakery items. It has recently adopted an activity-based costing system to assign manufacturing overhead to products. The following data relate to its strawberry cheesecake and the ABC cost pools: Strawberry Cheesecake: Annual production 19,800 units $10 $1 Direct materials per unit Direct labor per unit Cost Pool Materials ordering Materials inspection Equipment setup Quality control Other Total manufacturing overhead Cost $68,400 80,560 120,600 67,000 116,400 Cost Driver 0 Number of purchase orders Number of receiving reports Number of setups Number of inspections Direct labor cost $452,960 Annual activity information related to cost drivers Strawberry Cheesecake Cost Pool All Products Materials ordering Materials inspection Equipment setup Quality control Other 7,600 orders 100 380 receiving report 3,350 setups 3,350 inspections 160 $1,940,000 direct labor $19,800
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