PRACTICE TEST PROBLEM 1 Strief Industries identified the following budgeted overhead activities and drivers: Activity Pools Activity Drivers Machining..... Setups.......... Purchasing..... Data associated with Job 786 follows: Direct materials..... Direct labour Machine hours Number of setups Purchase orders $80,000 $15,000 $10,000 $1,000 $3,500 300 50 20 Machine hours.... Number of setups....... Purchase orders ... Instructions: 1. a. Clculate a unit-level overhead rate based on machine hours. 10,000 5,000 2,000

PROBLEM 1 Data associated with Job 786 follows: Instructions: 1. a. Clculate a unit-level overhead rate based on machine hours