a. Latif Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:

Required:

1. Compute POHR per activity (Round off to two decimal places)
2. Calculate the overhead cost per unit, if the company produces 1,000 units of product A and 500 units of product B. (6 MARKS)
   

Transcribed Image Text:

Activities Product design.. Assembling....... Supporting customers........ Estimated Overhead Cost Product A $17,600 $12,000 $26,000 Expected Activity Product B 800 500 800 300 200 400 Total 1,100 700 1,200 Activities Product design.. Assembling....... Supporting customers........ Estimated Overhead Cost Product A $17,600 $12,000 $26,000 Expected Activity Product B 800 500 800 300 200 400 Total 1,100 700 1,200

Answer rating: 100% (QA)

The detailed answer for the above question is provided below b Some scientists belief that costs of ... View the full answer