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Chapter 170 Swed Help Save Che A company has two products: standard and deluxe. The company expects to produce 40,175 standard units and 66,040 deluxe
Chapter 170 Swed Help Save Che A company has two products: standard and deluxe. The company expects to produce 40,175 standard units and 66,040 deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools Budgeted Activity of Cost Driver Activity Cost Pool Budgeted Cost Standard Deluxe Activity 1 $122,450 Activity 2 Activity 3 $130,000 $189,040 2,500 4,580 3,000 5,250 5,500 2,800 Required: 1. Compute overhead rates for each of the three activities 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.) Activity Expected Costs Expected Activity Driver Activity Rate 1 5 2 122 450 130 000 109 040 Standard a * search Chp Required: 1. Compute overhead rates for each of the three activities. 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.) Activity Expected Costs Expected Activity Driver Activity Rute 1 $ 2 122,450 130,000 109,040 3 Standard Activity 1 Activity Driver Activity Rate Allocated Cost 2 3 Deluxe Activity 1 Activity Driver Activity Rate Allocated Cost
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