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Overhead Activities Driver Usage Per Bottle # Bottles Sold 35,000 85,000 $ Activity driver Large Bottle Small Bottle Description Purchasing 178,750 # of Pounds Purchased

Overhead Activities

Driver Usage Per Bottle

# Bottles Sold

35,000

85,000

$

Activity driver

Large Bottle

Small Bottle

Description

Purchasing

178,750

# of Pounds Purchased

1.75

1.5

Pounds per Bottle

Setup

160,500

# of Production Batches

20

40

Bottle per Production Batch

Large Bottle Production

216,250

Machine Hours

1.75

Production Machine Hrs / Bottle

Small Bottle Production

265,000

Machine Hours

2

Production Machine Hrs / Bottle

Inspection

179,500

# of Inspections

3

5

# Bottles Inspected per Batch

Total MOH

600,000

Explain how to find cost drivers for each activity...

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