Question: Custom's makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with

Custom's makes two types of hats: polyester (poly) and silk. There

Custom's makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with $25,000 in overhead. Poly is estimated to have 760,000 setups and 160,000 inspections, while silk has 260,000 setups and 60,000 inspections. How much overhead is applied to each product? Applied to Poly Applied to Silk Activity Rate Setup $0.09 $ Inspection 0.08 Total

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