Shalom Company uses three activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows: product design P40,000; machining P300,000; and material handling P100,000. The cost drivers and estimated use are as follows: Activity Cost Pools Activities Product design Number of product changes Machining Material handling Machine hours Number of set-ups Estimated Use of Cost Driver Per Activity 10 150,000 100 Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. What is the activity-based overhead rate for product design? Shalom Company uses three activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows: product design P40,000; machining P300,000; and material handling P100,000. The cost drivers and estimated use are as follows: Activity Cost Pools Product design Machining Material handling Activities Number of product changes Machine hours Number of set-ups Estimated Use of Cost Driver Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. Per Activity 10 150,000 100 What is the activity-based overhead rate for machining? |