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Weisman, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats. Activity Cost Pools Estimated Overhead
Weisman, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats.
Activity Cost Pools | Estimated Overhead | Estimated Use of Cost Drivers per Activity | |||
---|---|---|---|---|---|
Designing | $425,000 | 10,000 | designer hours | ||
Sizing and cutting | 3,952,500 | 150,000 | machine hours | ||
Stitching and trimming | 1,398,750 | 75,000 | labor hours | ||
Wrapping and packing | 300,000 | 30,000 | finished units |
Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools
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