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Pronghorn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having
Pronghorn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Pronghorn accumulated the following data relative to those activity cost pools and cost drivers. Use of Annual Overhead Data Cost Drivers per Product Estimated Use Estimated of Cost Product Product Activity Cost Pools Cost Drivers Overhead Drivers per Activity BC113 AD908 Machine setup Setups $17,500 35 20 15 Machining Machine hours 120,750 4,830 1,140 3,690 Packing Orders 28,670 470 120 350 Using the above data, do the following: (a) Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity Cost Pools Machine $ setup Machining Packing Estimated Overhead Estimated Use of Cost Drivers per Activity setups $ Activity-Based Overhead Rates per setup machine hours $ per machine hr. orders $ per order $
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