Management Accounting

After consulting with the production personnel, he

prepared the following information on cost drivers and the estimated volume for each

driver.

The cost accountant also determined how much overhead costs were incurred in each of

the four activities as follows:

Activity Overhead costs

Machining

Setup

sh$.150,000$

Machining

sh$.750,000$

Total Machining department overhead

sh$.900,000$

Assembly

Assembly

sh$.360,000$

Inspection

sh$.90,000$

Total Assembly department overhead

sh$.450,000$

Total overhead costs

sh$.\backslash (1,350,000\backslash )$

Required:

a$)$ Determine the cost driver rate for each activity cost pool.

b$)$ Use the activity$-$based costing method to determine the unit cost for each product.