Question
Weber Industries has three activity cost pools and two products. It estimates production of 3,000 units of Product BC113 and 1,400 of Product ADgon. Having
Weber Industries has three activity cost pools and two products. It estimates production of 3,000 units of Product BC113 and 1,400 of Product ADgon. Having dentified in activity cost pools and the cost drivers for each pool. Weber accumulated the following data relative to those activity cost pools and cost drivers
Annual Overhead Data
Activity Cost Pool
Cost Drivers
Estimated Overhead
Estimated Use of Cost Drivers per Activity
40
Use of Cost Drivers per Product
Product BC13
Product
15
4,000
25
Set-upe
$ 16.000
Machine set-up
Machining
Machine bours
Orders
30,000
5,000
1,000
150
350
Packing
a. Prepare a schedule showing the calculations of the activity based overhead rates per cost driver
500
Instructions
h. Prepare a schedule assigning each activity's overhead cost to the two products. c. Calculate the overhead cost per unit for each product. (Round to nearest cent.)
d. Comment on the comparative overhead cost per product.
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