Exercise 17-3

Chapter 17 Activity-Based Costing and Analysis 781 Refer to the information in Exercise 17-1. Compute the activity rate for each activity, assuming the com pany uses activity-based costing. Exercise 17-2 Compute overhead rates under ABC P3 Refer to the information in Exercise 17-1. Assume that the following information is available for the com pany's two products for the first quarter of 2015. Exercise 17-3 Assigning costs using ABC P3 Deluxe Model Basic Model Production volume. 10,000 units 30,000 units 30,000 parts 100 batches 20 orders 10 invoices 250 batches 50 orders Purchase orders Invoices 5O invoices Space occupied .......10,000 square feet 7,000 square feet Models model I model Required Compute activity rates for each activity and assign overhead costs to each product model using activity- based costing (ABC). What is the overhead cost per unit of each model? Chapter 17 Activity-Based Costing and Analysis 781 Refer to the information in Exercise 17-1. Compute the activity rate for each activity, assuming the com pany uses activity-based costing. Exercise 17-2 Compute overhead rates under ABC P3 Refer to the information in Exercise 17-1. Assume that the following information is available for the com pany's two products for the first quarter of 2015. Exercise 17-3 Assigning costs using ABC P3 Deluxe Model Basic Model Production volume. 10,000 units 30,000 units 30,000 parts 100 batches 20 orders 10 invoices 250 batches 50 orders Purchase orders Invoices 5O invoices Space occupied .......10,000 square feet 7,000 square feet Models model I model Required Compute activity rates for each activity and assign overhead costs to each product model using activity- based costing (ABC). What is the overhead cost per unit of each model