Stillwater Company identified the following activities, estimated costs for each activity, and identified cost drivers for each activity for this coming year. (These are the first three steps of activity-based costing). Table 1:

The company produces three products, Z1, Z2, and Z3. Information about these products for the month of January follows: Table 2:

Actual cost driver activity levels for the month of January are as follows: Table 3:

Required: (see the activity-based costing worksheet completed in class which is similar to this problem)

a. Using the estimates in Table 1, compute the predetermined overhead rate for each activity.

b. Using the activity rates calculated in requirement a and the actual cost driver activity levels shown for January (Table 3), allocate overhead to the three products for the month of January.

c. For each product, calculate the overhead cost per unit for the month of January and total product cost per unit. (complete Table 2)