1.How much overhead, in total, is to be assigned to each product?

2. Using ABC, match the cost pools with the appropriate cost drivers

3. What is the total expected use of each cost driver? 

4.What is the formula to calculate the activity based overhead rate? 

5. What is the activity based overhead rate for each cost pool? 

6. What is the overhead cost to each product line?

7. What is the overhead cost per unit to each product ling?

8. Using ABC, what is the total manufacturing cost per unit for each product line?

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Pear Company makes two models of footwear, the Sandal and the Ste Pear has divided its monthly overhead into the following categories: Sandal $25 $30 S100 Production information for Pear is as follows: Shoe Direct materiai cost per unit Direct labor cost per unit Sales price per unit Expected production for the month (units) $30 $25 1000 S90 500 $4,000 ১3,000 Setup Quality Control Pear has provided the following for each of its products: Shoe 100 Sandal 400 Number of setups Number of Inspections 40 20 Pear Company makes two models of footwear, the Sandal and the Ste Pear has divided its monthly overhead into the following categories: Sandal $25 $30 S100 Production information for Pear is as follows: Shoe Direct materiai cost per unit Direct labor cost per unit Sales price per unit Expected production for the month (units) $30 $25 1000 S90 500 $4,000 ১3,000 Setup Quality Control Pear has provided the following for each of its products: Shoe 100 Sandal 400 Number of setups Number of Inspections 40 20

Answer rating: 100% (QA)

Answer Solution 1 a Total Overhead cost assigned to each product line under ABC system Particulars Sandal Shoe A Production in units 1000 500 B Overhe... View the full answer