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The activity-based overhead rate is computed as shown: Estimated Overhead per Activity Expected Use of Cost Drivers per Activity = Activity-Based Overhead Rate Estimated Overhead
The activity-based overhead rate is computed as shown: Estimated Overhead per Activity Expected Use of Cost Drivers per Activity = Activity-Based Overhead Rate Estimated Overhead Activity-Based Overhead Rates + Activity Cost Pools Manufacturing Setups ATLAS COMPANY Expected Use of Cost Drivers per Activity 50,000 machine hours 2,000 setups 2,500 purchase orders $ 500,000 $10 per machine hour $50 per setup 100,000 Purchase ordering 50,000 $20 per order Product development 200,000 2 products developed per product 50,000 $ Facility management 25,000 square feet per square foot $ 900,000 Total SUBMIT 60 inners
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