Philip Company produces mathematical and financial calculators and operates at

capacity. Data related to the two products are presented here.

$($Click the icon to view the data.$)$

Total manufacturing overhead costs are as follows:

$($Click the icon to view the overhead costs.$)$

Requirements

Choose a cost driver for each overhead cost pool and calculate the

manufacturing overhead cost per unit for each product.

Compute the manufacturing cost per unit for each product.

How might Philip's managers use the new cost information from

its activity$-$based costing system to better manage its business?

Requirement $1.$ Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product.

Begin by choosing a cost driver for each overhead cost pool. Total manufacturing overhead costs are as follows:

$3.$ How might Philip'

$($Click the icon to view the overhead costs.$)$

Data table

Requin

Begin

$1q,$ Data table

f$.$ Compute the ma

How might Philif

its activity$-$based

cturing overhead c