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Pharoah Industries has three activity cost pools and two products. It expects to produce 2,800 units of Product SZ09 and 1,300 of Product NZ16.
Pharoah Industries has three activity cost pools and two products. It expects to produce 2,800 units of Product SZ09 and 1,300 of Product NZ16. Having identified its activity cost pools and the cost drivers for each pool, Pharoah accumulated the following data relative to those activity cost pools and cost drivers. Activity Cost Pool Cost Driver Estimated Overhead Estimated Use of Cost Drivers SZ09 NZ16 Machine set-ups Set-ups $63,600 200 130 70 Assembling Machine hours 354,000 17,700 10,300 7,400 Inspection Inspections 6,160 110 60 50 Calculate the overhead rates. Machine set-ups Assembling Inspection per set-up per machine hour +A $ per inspection Assign the overhead cost to the two products. SZ09 NZ16 CA $ +A $
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