Question
Wide Corporation manufactures two products: A and B. The total indirect manufacturing overhead resource costs of $183,400 have been assigned to four activity cost pools
Wide Corporation manufactures two products: A and B. The total indirect manufacturing overhead resource costs of $183,400 have been assigned to four activity cost pools that use the following cost drivers: Product------ Number of Setups--- Machine Runs-------- Packing Hours---------- Orders Product A--------- 40---------------------- 70----------------------- 2,000---------------------- 150 Product B ---------20---------------------- 140---------------------- 3,000---------------------- 250 Cost per Pool $15,000------------------ $8,400---------------- $120,000---------------- $40,000 Required: a. Compute the unit activity costs for each of the cost drivers listed. b. Assign the overhead costs to products A and B using activity-based costing.
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