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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 )

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