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Grouper Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified

Grouper Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Grouper accumulated the following data relative to those activity cost pools and cost drivers.

Annual Overhead Data

Use of Cost Drivers per Product

Activity Cost Pools

Cost Drivers

Estimated Overhead

Estimated Use of Cost Drivers per Activity

Product BC113

Product AD908

Machine setup

Setups

$ 19,000

38

24

14

Machining

Machine hours

84,150

4,950

1,080

3,870

Packing

Orders

31,800

530

200

330

Using the above data, do the following:

(a)

Prepare a schedule showing the computations of the activity-based overhead rates per cost driver.

Activity Cost Pools

Estimated Overhead

Estimated Use of Cost Drivers per Activity

Activity-Based Overhead Rates

Machine setup

$ enter a dollar amount

enter a number of setups

setups

$ enter a dollar amount per setup

per setup

Machining

enter a dollar amount

enter a number of machine hours

machine hours

$ enter a dollar amount per machine hour

per machine hr.

Packing

enter a dollar amount

enter a number of orders

orders

$ enter a dollar amount per order

per order

$ enter a total amount

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