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Sunland Company uses four activity pools to apply overhead to its products. Each activity has a cost driver used to assign the overhead costs
Sunland Company uses four activity pools to apply overhead to its products. Each activity has a cost driver used to assign the overhead costs to the product. The activities and related overhead costs are as follows: Activity Total Costs Volume of Cost Driver Material handling $570,700 114,140 parts Purchase orders 203,760 36 orders Set-up hours 324,940 154 hours Machining 448,440 3,030 machine hours Total costs $1,547,840 The above activities are used by the two different products as follows: PC-21 WX-34 Material handling 75,580 parts 38,560 parts Purchase orders Set-up hours Number of machine hours 21 113 hours 2,180 machine hours 15 41 hours 850 machine hours
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