Cenatrac produces two products: hand soap and sanitizer. During June, 8,000 containers of hand soap and 6,000 containers of sanitizer were produced. Total overhead costs of $34,000 were incurred. The following information related to overhead costs was available:

The cost driver volume for each product was as follows:

Instructions
(a) Compute the overhead rate for each activity.
(b) Assign the manufacturing overhead costs for June to the two products using activity-based costing, and determine the overhead cost per unit.

Transcribed Image Text:

Cost Driver Number of requisitions Number of setups Number of inspections Total Cost Activity Materials handling Machine setups Quality inspections S7,000 12,000 15,000 Cost Driver Number of requisitions Number of setups Hand soap 25 Sanitizer Total 40 15 25 12 90 13 Number of inspections 160 250