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Marigold 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
Marigold 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, Marigold accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Use of Cost Drivers per Product Estimated Use of Cost Estimated Activity Cost Pools Cost Drivers Overhead Drivers per Activity Product BC113 Product AD908 Machine setup Setups $19,000 38 27 11 Machining Machine hours 89,640 4,980 1,020 3,960 Packing Orders 31,320 540 190 350 Using the above data, do the following: (a) Prepare a schedule showing the computations of the activity-based overhead rates per cost driver.
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