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overhead cost Driver Process Activity Components Changeover Quantity Machining Setups 471,750 Number of batches 361,305 Machine hours 145,200 Number of setups 850 7,770 80 $
overhead cost Driver Process Activity Components Changeover Quantity Machining Setups 471,750 Number of batches 361,305 Machine hours 145,200 Number of setups 850 7,770 80 $ 978,255 Pinishing Welding Inspecting Rework 306,240 Welding hours 285,450 Number of inspections 4, 800 865 280 67,200 Rework orders 658, 890 $186,110 31,200 Providing utilities51,600 $268,910 Support Purchasing Purchase orders Number of units Number of units 503 4,500 4,500 Providing space Additional production information concerning its two product lines follows Model 145 Model 212 1,500 1,200 425 475 2,450 40 160 335 Units produced 3,000 3,600 425 390 Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders ,320 40 120 Required 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $240 for Model 145 and $113 for Model 212
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