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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 activity’s overhead cost tothe two products.

c. Calculate the overhead cost per unit for each product.

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Jean Keeling
Jean KeelingLv2
28 Sep 2019
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