Question
SEJONG Inc. has five activity cost pools and two products (a budget tape rewinder and a deluxe tape rewinder). Information is presented below: Cost Drivers
SEJONG Inc. has five activity cost pools and two products (a budget tape rewinder and a deluxe tape rewinder). Information is presented below:
Cost Drivers by Product
Activity Cost Pool Cost Driver Est. Overhead Budget Deluxe
Ordering and Receiving Orders $ 140,000 500 200
Machine Setup Setups 90,000 200 100
Machining Machine hours 2,500,000 40,000 10,000
Assembly Parts 750,000 250,000 150,000
Inspection Inspections 480,000 700 500
Instructions
Calculate the overhead cost per unit for each product. Production is 1,000,000 units of Budget and 500,000 units of Deluxe. Round your answer to the nearest cent.
Answer only (A), (B) & (C)
Optional: Calculations : ex) (( a ) x ( b )) + c - d = Answer
Activity Cost Pool Est. Overhead Total Est. Activity = Overhead Rate
Ordering & Receiving $ 140,000 700 orders ( A )
Machine Setup 90,000 300 setups $300/setup
Machining 2,500,000 50,000 mach. hours ( B )
Assembly 750,000 400,000 parts $1.875/part
Inspection 480,000 1,200 inspections
Budget Deluxe
Cost Cost Cost Cost
Activity Cost Pool Driver Rate = Assigned Driver Rate = Assigned
Ordering & Receiving $ 100,000 $ 40,000
Machine Setup 60,000
Machining 500,000
Assembly 468,750
Inspection
Units 1,000,000 500,000
Unit cost $ ( C )
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started