B. Blender, $23.60 per unit EX 18-15 Activity-based costing and product cost distortion The management of Four Finger Appliance Company in Exercise 14 has asked activity-based costing instead of direct labor hours to allocate factory overhead two products. You have determined that $81,000 of factory overhead from each of tion departments can be associated with setup activity ($162,000 in total). Com indicate that blenders required 135 setups, while the toaster ovens required only Each product has a production volume of 7,500 units. A Determine the three activity rates (assembly, test and pack, and setup). B. Determine the total factory overhead and factory overhead per unit allocated to product using the activity rates in (A). Obj4 was asked you to use chead costs to the each of the produc- otal). Company records ired only 45 setups. DXCEL TEMPLATE EXCEL TEMPLATE nit allocated to each der. $18.20 Four B. Blender, $18.20 per unit EX 18-14 Multiple production department factory overhead rate Obj. 3 Four Finger Appliance Company manufactures small kitchen appliances. The produ sists of blenders and toaster ovens. Four Finger Appliance presently uses the mund atchen appliances. The product line con- department factory overhead rate method. The factory overhead is as follows ently uses the multiple production Assembly Department $186,000 Test and Pack Department Total $306,000 The direct labor information for the production of 7.500 units of each product is EXCEL TEMPLATE 120.000 Blender Toaster oven Total Assembly Department 750 dlh 2,250 3,000 dih Test and Pack Department 2.250 dih 750 3,000 dih (Continued)