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DONT ANSWER IN PICTURE Q1. Casey Company has five activity cost pools and two products. It expects to produce 200,000 units of its automobile scissors
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Q1. Casey Company has five activity cost pools and two products. It expects to produce 200,000 units of its automobile scissors jack and 80,000 units of its truck hydraulic jack. Having identified its activity cost pools and the cost drivers for each cost pool, Casey Company accumulated the following data relative to those activity cost pools and cost drivers. Expected Use of Annual Overhead Data Cost Drivers per Product Estimated Expected Use of Cost Scissors Hydraulic Activity Cost Pools Cost Drivers Overhead Drivers per Activity Jacks Jacks Ordering and receiving Purchase orders $ 200,000 2,500 orders 1,000 1,500 Machine setup Setups 600,000 1,200 setups 500 700 Machining Machine hours 2,000,000 800,000 hours 300,000 500,000 Assembling Parts 1,800,000 3,000,000 parts 1,800,000 1,200,000 Inspecting and testing Tests 700,000 35,000 tests 20,000 15,000 $5,300,000 | Using the above data, do the following. (a) Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. (b) Prepare a schedule assigning each activity's overhead cost to the two products. (c) Compute the overhead cost per unit for each product. (d) Comment on the comparative overhead cost per unitStep by Step Solution
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