Accounting 2120 Chapter 18 Activity Based Costing Assignment 1 1. Computing Overhead using Activity Based Costing; Company A: Estimated Annual Overhead: $950,000 Overhead Allocated to Cost Pools: Machine Setups: 22%; Machining: 68%; Inspections: 10%; **Overhead Rate - Round to hundredths Cost Pools Cost Drivers Overhead Allocated to Cost Pools Expected Use of Drivers Overhead Rate per Driver Machine Setups of Setups 32001 Machining Machine Hours 50,000 Inspections of Inspections 4000 Use of Drivers Use of Drivers Overhead Allocated to Overhead Allocated to Product A Product A Product B Cost Drivers of Setups 1100 Machine Hours 32,000 # of Inspections 2800 Product B 2100 18,000 1200 Total Overhead Applied to Products Units Produced: Product A: 45,000; Product B: 80,000 **Round to nearest hundredth** Overhead Cost per Unit: Product A:_ $18.50 $20.00 unit: Product B: DM per unit: $25.00 DM per unit: DL per unit: $12.75 DL per unit: Total Cost per unit: Total Cost per 1. If 7,000 units of product A are sold and 19,000 units of B are sold, what will be the total debit to COGS?