Question
Warner Manufacturing has three activity cost pools and two products (a Standard screen and a Flat screen). Information is presented below: Cost Drivers by Product
Warner Manufacturing has three activity cost pools and two products (a Standard screen and a Flat screen). Information is presented below:
Cost Drivers by Product
Activity Cost PoolCost DriverEst. OverheadStandardFlat
Ordering and ReceivingOrders$240,000600200
Machine SetupSetups242,000600500
InspectionInspections240,000400350
Instructionsg
Compute the overhead cost per unit for each product under the proposed activity based costing. Production is 400,000 units of Standard and 125,000 units of Flat.( Round to the nearest cent. all necessary schedules).
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