Question
Weber Industries has three activity cost pools and two products. It estimates production of3,000units of Product BC113 and1,400of Product AD908. Having identified its activity cost
Weber Industries has three activity cost pools and two products. It estimates production of3,000units of Product BC113 and1,400of Product AD908. Having identified its 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 DataEstimatedUse of Cost
Drivers per
ProductActivity Cost PoolCost Drivers
Estimated
OverheadEstimated Use of
Cost Drivers per ActivityProduct
BC113Product
AD908Machine set-upSet-ups$21,465452817MachiningMachine hours111,7605,0801,0164,064PackingOrders29,890490147343
(a)
Prepare schedule showing the calculations of the activity-based overhead rates per cost driver.
Cost PoolEstimated
MOHEstimated
UsageRateMachine set-up
$
enter a dollar amount
enter the estimated usage
$
enter a dollar amount
per set-upMachining$
enter a dollar amount
enter the estimated usage
$
enter a dollar amount
per machine hr.Packing
$
enter a dollar amount
enter the estimated usage
$
enter a dollar amount
per order
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