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Exercise 17-12 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce 36,375 standard units

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Exercise 17-12 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce 36,375 standard units and 62.240 deluxe units It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted cost $93,00 $92,000 $87,eee Budgeted Activity of Cost Driver Standard Deluxe 2.500 5,250 4,500 5,500 3, eee 2.ee Required: 1. Compute overhead rates for each of the three activities 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.) Required: 1. Compute overhead rates for each of the three activities. 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.) Activity Expected Costs Expected Activity Driver Activity Rate 1 $ 93,000 2 92,000 3 87,000 Standard Activity Rate Allocated Cost Activity Activity Driver 1 N 3 3 Deluxe Activity Activity Driver 1 Activity Rate Allocated Cost 2 3

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