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Inc. manufactures two products, A1 and B2. March production and estimated overhead costs (by activity) for these two products was as follows: Product A1 Units
Inc. manufactures two products, A1 and B2. March production and estimated overhead costs (by activity) for these two products was as follows: Product A1 Units 60 350 B2 Activity Material handling Machine setups Quality inspections Cost Driver of requisitions of setups of inspections Total Estimated Overhead $36,000 $28,000 $25,000 $89,000 The cost driver volume for each product was as follows: Cost Driver B2 of requisitions 380 650 # of setups 210 # of inspections 200 425 Total 1,030 560 625 Instructions: (a) Determine the overhead rate for each activity. Activity cell reference cell reference cell reference Expected Use Activity-based Estimated of Cost Drivers Overhead Overhead per Activity Rates cell reference cell reference formula cell reference cell reference formula cell reference cell reference formula (b) Assign the manufacturing overhead costs for April to the two products using activity-based costing. Cost Driver cell reference cell reference cell reference Total costs Units produced Overhead cost per unit ABC Overhead Rate cell reference cell reference cell reference Product A1 Use Cost cell reference formula cell reference formula cell reference formula formula cell reference formula Product B2 Use Cost cell reference formula cell reference formula cell reference formula formula cell reference formula Total Overhead Cost Assigned formula formula formula formula
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