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Potterii sells its products to large box stores and recently added a retail line of products to sell directly to consumers. These estimates are to
Potterii sells its products to large box stores and recently added a retail line of products to sell directly to consumers. These estimates are to be used in determining the overhead allocation rate for ABC:
Cost Pool | Cost Driver | Estimated Overhead | Wholesale | Retail |
Ordering | Number of Orders | $108,000 | 190,000 | 80,000 |
Machine Setups | Number of Setups | 90,000 | 210,000 | 150,000 |
Inspection | Number of Inspections | 76,000 | 60,000 | 16,000 |
What would be the predetermined rate for each cost pool? Round "Rate" answers to two decimal places.
Cost Pool | Cost Driver | Estimated Overhead | Total Activity | Rate | |
Ordering | Number of Orders | $108,000 | fill in the blank 1 | $fill in the blank 2 | per order |
Machine Setups | Number of Setups | 90,000 | fill in the blank 3 | $fill in the blank 4 | per setup |
Inspection | Number of Inspections | 76,000 | fill in the blank 5 | $fill in the blank 6 | per inspection |
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