Question:

Activity Cost Pool / Est. Cost for the year / Activity Cost Driver / POHR Act.

Assembly / $1,069,344 / 56400 / $18.96

Processing orders/ $38,280 / 1500 / $25.52

Inspection / $102,300 / 1500 / $68.20

Totals $1,210,464

The company makes 280 units of product J71B a year.

920 machine hours

30 orders

16 inspection hours

direct materials $26.90 per unit

direct labor $18 per unit

According to Activity Based Accounting, the total overhead cost for producing 280 units of J71B product is: