Question: ABC method The controller for SABIC Supply Company has established the following overhead cost pools and cost drivers: Activity Cost Pool Cost Driver Estimated Overhead

ABC method

The controller for SABIC Supply Company has established the following overhead cost pools and cost drivers: Activity Cost Pool Cost Driver Estimated Overhead Cost Machine setups Number of setups $150,000 Material handling Units of raw material 52,500 Quality control inspection Number of inspections 37,500 Other overhead costs Machine hours 90,000 Total $330,000 Activity Cost Pool Machine setups Material handling Quality control Other overhead Expected Level for Cost Driver 100 setups 50,000 units 1,000 inspections 15,000 machine hours Required: Prepare a schedule showing the computations of the activity- based overhead rates per cost driver. (2 points)

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