Monty Industries has three activity cost pools and two products. It estimates production 2,000 units of...

    

Transcribed Image Text:

Monty Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Monty accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Activity Cost Pools Machine setup Machining Packing Cost Drivers Setups Machine hours Orders Using the above data, do the following: Estimated Overhead $27,000 98.800 31.500 Use of Cost Drivers per Product Estimated Use of Cost Drivers per Activity 45 5,200 450 Product BC113 27 1,040 160 Product AD908 18 4,160 290 Monty Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Monty accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Activity Cost Pools Machine setup Machining Packing Cost Drivers Setups Machine hours Orders Using the above data, do the following: Estimated Overhead $27,000 98.800 31.500 Use of Cost Drivers per Product Estimated Use of Cost Drivers per Activity 45 5,200 450 Product BC113 27 1,040 160 Product AD908 18 4,160 290

Answer rating: 100% (QA)

Compute the activitybased overhead rates for the cost pools Activ... View the full answer