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Specialty Seals produces two products: a Water Seal and a Gas Seal. Expected production volumes for the Water Seal are 5,000 units and for the

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Specialty Seals produces two products: a Water Seal and a Gas Seal. Expected production volumes for the Water Seal are 5,000 units and for the Gas Seal they are 1,000 units. Manufacturing overheads are estimated based on the amount of the cost-driving activity. Specialty Sea estimates total costs of $100,000 for these activities and the total use for each product as follows: Expected Activity Lovel, Total Activity Measure Water Seal Assembly Machining 1.000 Gas Seal Cost Driver DL hrs machine hes Est. OH Cost S40,000 560.000 2800 6000 2.500 Choose... Compute the activity overhead rates using ABC for machining per machine hour. Compute the predetermined overhead rate per DL hour using only DL hours as the cost driver (not ABC costing). Calculate the MOH per unit for the Water Seal using ABC costing. Calculate the MOH per unit for the Water Seal using ABC costing. Compute the activity overhead rates using ABC for assembly per DL hour. Choose... + Choose... : Choose... - Choose

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