Activity Based Costing Activity 2 1. Computing Overhead using Activity Based Costing. Use the information below and apply Activity Based Costing to find the overhead cost per unit for each product. Company A: Estimated Annual Overhead: $1,220,000 Overhead Allocated to Cost Pools: Machine Setups: 24%; Machining: 58%; Inspections: 18% Activity Cost Pools Cost Drivers Machine Setups # of Setups Machining Machine Hours Inspections of Inspections Overhead Allocated to Cost Pools Expected Use of Drivers Overhead Rate per Driver 6,000 40,000 7,500 Cost Drivers Use of Drivers Product XYZ Use of Drivers Product ABC Overhead Allocated to Product XYZ Overhead Allocated to Product ABC of Setups 3200 2800 Machine Hours 28,500 11.300 of Inspections 3.400 4,100 Total Overhead Applied to Products Units Produced Product XYZ 75,000: Prodect ABC: 200,000 Overbead Cost per Unit Product XYZ Product ABC