Question
Randel Manufacturing has five activity cost pools and two products (a budget vacuum and a deluxe vacuum). Information is presented below: Setups Deluxe 400
Randel Manufacturing has five activity cost pools and two products (a budget vacuum and a deluxe vacuum). Information is presented below: Setups Deluxe 400 400 100,000 800,000 FET11 Activity Cost Pool Ordering and Receiving Machine Setup Machining Cost Driver Orders Est. Overhead Budget $ 130,000 600 297,000 500 Machine hours 1,000,000 Assembly Inspection Parts Inspections 1,600,000 150,000 1,200,000 300,000 550 450 Total Units Produced are 700,000 units for product Budget and 200,000 units for Deluxe Instructions 1. Compute the overhead cost rate for each pool 2. Assign costs to each pool and get a total for each product 3. Calculate the per unit overheard cost for each product
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