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Question Ellicottville Inc. has identified the following overhead activities, costs, and activity drivers for the coming year: Expected Activity Activity Activity Cost Driver Capacity Setting
Question Ellicottville Inc. has identified the following overhead activities, costs, and activity drivers for the coming year: Expected Activity Activity Activity Cost Driver Capacity Setting Up 360,000 Number of setups 300 Inspecting 545,000 Inspection hours 4,500 Grinding 590.000 Machine hours 18.000 Receiving 525,000 Number of parts 50.000 Total 5220,000 The company produces baseball bats used by the Blue Jays. Information on separate batches for two of these subassemblies follows: Product A B Total direct materials $1.075 $1.620 Total direct labour 6575 5480 Units completed 100 50 Number of setups 1 1 Inspection hours 4 2 Machine hours 20 30 Parts used 20 40 The company's normal activity is 4,000 direct labour hours. Each batch uses 50 hours of direct labour. Required: 1) Determine the unit cost for each product using direct labour hours to apply overhead. A B 44 | $ 97 2) Determine the total overhead for each product using the four activity drivers. A B $ 350 | $ 390
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