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Sabby Industries has three activity cost pools and two products. It expects to produce 3,500 units of Product SZ09 and 1,200 of Product NZ16. Having
Sabby Industries has three activity cost pools and two products. It expects to produce 3,500 units of Product SZ09 and 1,200 of Product NZ16. Having identified its activity cost pools and the cost drivers for each pool, Sabby accumulated the following data relative to those activity cost pools and cost drivers.
Activity Cost Pool | Cost Driver | Estimated Overhead | Estimated Use of Cost Drivers | SZ09 | NZ16 | |||||
Machine set-ups | Set-ups | $70,680 | 190 | 140 | 50 | |||||
Assembling | Machine hours | 354,000 | 17,700 | 10,500 | 7,200 | |||||
Inspection | Inspections | 7,810 | 110 | 50 | 60 |
(a)
Calculate the overhead rates.
Machine set-ups | $ per set-up | |
Assembling | $ per machine hour | |
Inspection | $ per inspection |
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