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Randel Manufecturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below: Cost Drivers
Randel Manufecturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below: Cost Drivers by Product Activity Cost PoolCost Driver Ordering and Receiving Orders Machine Setup Machining Assembly Inspectiorn Estimated OverheadBudgetDeluxe Setups Machine hours Parts 400 400 150,000100,000 1,600,000 1,200,000 800,000 450 $130,000 297,000 1,000,000 600 500 300,000 550 Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round overhead cost per unit to 2 decimal places, e.g. 12.25 and cost assigned to 0 decimal places, e.g. 2,500.) Overhead cost per unit Budget s Deluxe fs per unit per unit
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