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 AD908. 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 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 Data Estimated Use of Cost Drivers per Product 12 Estimated Use Activity Cost Estimated of Cost Product Product Cost Pool Drivers Overhead Drivers per BC113 AD908 Activity. Machine set-up Set-ups $16,000 40 25 15 (Machinins hours (Machine 110.000 5.000 Packing Orders 30,000 500 1.000 4.000 150 350 Instructions: a. Prepare a schedule showing the calculations of the activity-based overhead rates per cost driver. b. 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)
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