Case 1 (20 Marks)

XYZ Ltd has five activity cost pools and two products.It expects to produce 200,000 units of its automobile scissors jack and 80,000 units of its truck hydraulic jack.Having identified its actitivy cost pools and the cost drivers for each cost pool, Super tools Pty Ltd accumulated the following data relative to those activity cost pools and cost drivers.

Using the above data, do the following:

a) Prepare a schedule showing the computation of the activity-based costing overhead rate per cost driver (5 Marks).

b) Prepare a schedule assigning each activitys overhead cost to the two products (5 Marks).

c) Compute and describe the overhead cost per unit for each product (5 Marks).

d) Explain the comparative overhead cost per unit (5 Marks).

Annual overhead data Expected use of cost drivers per product