PROBLEM # $4$ EXCELL SPREADSHEET

Cenatrac produces two products: hand soap and sanitizer. During June, $8,000$ containers of

hand soap and $6,000$ containers of sanitizer were produced. Total overhead costs of $$34,000$

were incurred. The following information related to overhead costs was available:

ACTIVITY COST DRIVER TOTAL COST

Materials handling Number of requisitions $7,000$

Machine set ups Number of set ups $12,000$

Quality inspectations Number inspectations $15,000$

The cost driver volume for each product was as follows:

Number of requisitions

Hand soap $25$

Sanitizer $15$

Total $40$

Number of set ups

Hand soap $12$

Sanitizer $13$

Total $25$

Number inspectations

Hand soap $90$

Sanitizer $160$

Total $250$

INSTRUCTIONS

A Compute the overhead rate for each activity.

B Assign the manufacturing overhead costs for June to the two products using

activity$-$based costing, and determine the overhead cost per unit.