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28 Sep 2019
Weber Industries has three activity cost pools and two products.It expects to produce 3,000 units of Product BC113 and 1,400 ofProduct AD908. Having identified its activity cost pools and thecost drivers for each pool, Weber accumulated the following datarelative to those activity cost pools and cost drivers.
Annual Overhead Data Expected Use of Cost
Drivers per Product Activity Cost Pool Cost Drivers Estimated
Overhead Expected Use of
Cost Drivers per Activity Product
BC113 Product
AD908 Machine set-up Set-ups $ 18,630 41 26 15 Machining Machine hours 110,160 4,830 966 3,864 Packing Orders 29,570 510 153 357
a.Prepare a schedule showing the calculations of theactivity-based overhead rates per cost driver.
b.Prepare a schedule assigning each activityâs overhead cost tothe two products.
c. Calculate the overhead cost per unit for each product.
Weber Industries has three activity cost pools and two products.It expects to produce 3,000 units of Product BC113 and 1,400 ofProduct AD908. Having identified its activity cost pools and thecost drivers for each pool, Weber accumulated the following datarelative to those activity cost pools and cost drivers.
Annual Overhead Data | Expected Use of Cost Drivers per Product | |||||||||||
Activity Cost Pool | Cost Drivers | Estimated Overhead | Expected Use of Cost Drivers per Activity | Product BC113 | Product AD908 | |||||||
Machine set-up | Set-ups | $ | 18,630 | 41 | 26 | 15 | ||||||
Machining | Machine hours | 110,160 | 4,830 | 966 | 3,864 | |||||||
Packing | Orders | 29,570 | 510 | 153 | 357 |
a.Prepare a schedule showing the calculations of theactivity-based overhead rates per cost driver.
b.Prepare a schedule assigning each activityâs overhead cost tothe two products.
c. Calculate the overhead cost per unit for each product.
14 Jun 2023
Jean KeelingLv2
28 Sep 2019
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