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Custom's makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with
Custom's makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with $25,000 in overhead. Poly is estimated to have 750,000 setups and 160,000 inspections, while silk has 250,000 setups and 70,000 inspections. How much overhead is applied to each product? Applied to Poly Applied to Silk Activity Rate Setup $0.08 $ Inspection 0.08 Total
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