JOINT PRODUCT COSTING TOTALS PRODUCT Quantity Ink Paper Labor productivity Labor rate ASSUMPTIONS: PRINCIPLES INTERMEDIATE ADVANCED TAX 20,000 20,000 10,000 10,000 1@$10 2@$10 3@104@$10 1@$5 2@$5 2@$5 4@$5 20 books 10 books per 10 book per 5 book hour hour $40 per $40 per hour hour hour hour 4 4 2 2 per hour per hour $40 per $40 per Selling price multiple Labor hours ? ? ? ? ? ASSUME TOTAL OVERHEAD IS $300,000 I. Activity A. ONE ALLOCATION BASIS-LABOR HOURS Man. PRINCIPLES INTERMEDIATE ADVANCED TAX overhead Total Activity Rate Labor hours B. COMPUTATION OF OVERHEAD COST ON UNIT BASIS Activity PRINCIPLES INTERMEDIATE Man. overhead ADVANCED TAX 1. Labor hours 2. Activity rate 3. Allocated overhead (Line 1X2 4. Quantity B. COMPUTATION OF OVERHEAD COST ON UNIT BASIS Activity PRINCIPLES Man. overhead INTERMEDIATE ADVANCED TAX 1. Labor hours 2. Activity rate 3. Allocated overhead (Line 1X2 4. Quantity 5. Unit overhead 2 cost (Line 3/4) CALCULATION OF UNIT PRODUCT COST, SELLING PRICE AND PREDERTERMINED OVERHEAD RATE (ACTIVITY RATE) PRODUCT PRINCIPLES INTERMEDIATE ADVANCED TAX