need help with this: Claire Company produces Tablets and Books. Total overhead costs traditionally have been allocated
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Claire Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products.
Activity Pool | Department Costs | Cost Driver |
Binding | $257,922 | Number of units |
Printing | 794,052 | Machine hours |
Product design | 196,236 | Change orders |
General | 641,700 | None |
Total overhead costs | $1,889,910 |
Tablets | Books | |
Units | 62,900 | 20,000 |
Direct materials cost per unit | $2.86 | $10.44 |
Direct labor cost per unit | $3.87 | $8.12 |
Direct labor hours | 25,400 | 16,000 |
Machine hours | 125,000 | 120,000 |
Change orders | 1,200 | 2,000 |
Calculate ABC rates. (Round answers to 2 decimal places, e.g. 15.25.)
ABC rates | |
Binding | $ /unit |
Printing | $ /machine hour |
Product design | $ /change order |
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