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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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