Question
Carla Vista Industries has three activity cost pools and two products. It estimates production of 3,000 units of Product BC113 and 1,400 of Product AD908.
Carla Vista Industries has three activity cost pools and two products. It estimates production of 3,000 units of Product BC113 and 1,400 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Carla Vista accumulated the following data relative to those activity cost pools and cost drivers.
Annual Overhead Data | Use of Cost Drivers per Product | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Activity Cost Pool | Cost Drivers | Estimated Overhead | Estimated Use of Cost Drivers per Activity | Product BC113 | Product AD908 | ||||||||
Machine set-up | Set-ups | $ | 18,146 | 43 | 27 | 16 | |||||||
Machining | Machine hours | 111,090 | 4,830 | 966 | 3,864 | ||||||||
Packing | Orders | 29,400 | 490 | 147 | 343 |
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