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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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