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Monty 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
Monty 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, Monty accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Use of Cost Drivers per Product Estimated Use Estimated of Cost Product Product Activity Cost Pools Cost Drivers Overhead Drivers per Activity BC113 AD908 Machine setup Setups $27,000 45 27 18 Machining Machine hours 98,800 5.200 1,040 4,160 Packing: Orders 31.500 450 160 290 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 Estimated Use of Cost Estimated Pools Overhead Machine setup $ Machining Packing Drivers per Activity setups $ machine hours $ orders Activity-Based Overhead Rates per setup per machine hr. $ per order
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