Question

Weber Industries has three activity cost pools and two products. It estimates the 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
Activity Cost Pool		Cost Drivers		Estimated Overhead			Estimated Use of Cost Drivers per Activity		Product BC113		Product AD908
Machine set-up		Set-ups		$	20,855		43		27		16
Machining		Machine hours			111,760		5,080		1,016		4,064
Packing		Orders			29,120		520		156		364

Prepare a schedule showing the calculations of the activity-based overhead rates per cost driver.

a.

Cost Pool		Estimated MOH		Estimated Usage		Rate
Machine set-up		$enter a dollar amount		enter the estimated usage		$enter a dollar amount	per set-up
Machining
Packing

b.Prepare a schedule assigning each activity’s overhead cost to the two products.

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

Answer 1