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Required: Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC). What is the overhead cost per
Required: Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC). What is the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.) Deluxe Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Basic Activity Handling materials Inspecting product Processing orders Activity Rate Cost driver quantity incurred OH Allocated Activity Rate Cost driver quantity incurred OH Allocated 10 0 Required information [The following information applies to the questions displayed below.] Alden Co.'s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. Month Units Sold Total Cost Month 1 318,000 $155,500 7 Units Sold 362,000 Total Cost 2 163,000 99,250 8 268,000 $292,624 149,750 3 263,000 203,600 9 76,400 67,000 4 203,000 98,000 10 148,000 128,625 5 288,000 199,500 11 92,000 92,000 6 188,000 110,000 12 98,000 83,650 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)
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