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Cost Drivers b uct Activit Cost Driver Estimated OH Product A Product B Ordering & Receiving number of orders Machine Setu Machinin number of setups
Cost Drivers b uct Activit Cost Driver Estimated OH Product A Product B Ordering & Receiving number of orders Machine Setu Machinin number of setups machine hours $110,000 $297,000 $1,000,000 600 500 150,000 400 400 100,000 Instructions: Part A (first chart below) compute overhead activity rate per unit for each product. Part B (second chart below) Production of Product A is 700,000 units and production of Product B is 200,000 units. Calculate overhead cost assignment for each product. Round final answers to nearest cent, if necessa 2 Part A Activity Rate chart: Activi Ordering & Receivin Machine Setu Estimated OH Total Est. Activity = | Activity (OH) Rate Note: Activity Rate is also an overhead rate per order per setup per machine hour 5 Machinin Part B Overhead Cost Assignment chart: Product A x OH rate = Product B x OH rate = Cost Driver number | Activi 1 Ordering & Receivin 2 Machine Setu 3 Machining 4 Total Answer Cost Driver numberx Answer xxX xxX /product units = cost per unit
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