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Question 1 Swifty Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908.
Question 1 Swifty Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Swifty accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Estimated Use of Cost Drivers per Product Cost Drivers Estimated Use of Cost Product Drivers per Activity BC113 Product AD908 Activity Cost Pools Machine setup Machining Packing 15 Estimated Overhead $17,500 120,750 28,670 Setups Machine hours 35 4,830 470 20 1,140 3,690 Orders 120 350 Using the above data, do the following: Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers per Activity Activity-Based Overhead Rates Machine setup setups per setup Machining machine hours per machine hr. Packing orders orders per order Prepare a schedule assigning each activity's overhead cost to the two products. Activity Cost Pools BC113 Estimated Use of Cost Activity-Based Drivers per Product Overhead Rates Cost Assigned AD908 Estimated Use of Cost Activity-Based Drivers per Product Overhead Rates Cost Assigned Machine setup $ Machining o Packing o Total assigned costs CA $ Compute the overhead cost per unit for each product. (Round answers to 2 decimal places, e.g. 12.25.) BC113 AD908 Overhead cost per unit
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