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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?
Activity | Rate | Applied to Poly | Applied to Silk |
Setup | $0.08 | $fill in the blank 1 | $fill in the blank 2 |
Inspection | 0.08 | fill in the blank 3 | fill in the blank 4 |
Total | $fill in the blank 5 | $fill in the blank 6 |
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