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Coronado makes two products, Simple and Complex. As their names suggest, Simple is the more basic product, and Complex comes with all the bells and
Coronado makes two products, Simple and Complex. As their names suggest, Simple is the more basic product, and Complex comes with all the bells and whistles. The company has always allocated overhead costs to products based on machine hours. Last year, the company implemented an activity-based costing system, and managers determined the following activity pools and rates based on total overhead of $2,310,000 : Only the Complex product requires bonding, so all the costs of bonding should be allocated to Complex. The following data relate to both products. Using the activity-based costing rates, - allocate overhead cost to the products. - show that the overhead assigned to each product sums to the total company overhead. - determine the overhead cost per unit for each product. (Round per unit answers to 2 decimal places, e.g. 15.25.)
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