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managerial course

Problem 2: (2 points) The controller for SABIC Supply Company has established the following overhead cost pools and cost drivers: Activity Cost Pool Cost Driver Estimated Overhead Cost Machine setups Number of setups $150,000 Material handling Units of raw material 52,500 Quality control inspection Number of inspections 37,500 Other overhead costs Machine hours 90,000 Total $330,000 Activity Cost Pool Machine setups Material handling Quality control Other overhead Expected Level for Cost Driver 100 setups 50,000 units 1,000 inspections 15,000 machine hours Order no. 204 has the following production requirements: Activity Cost Pool Expected Level for Cost Driver Machine setups 5 setups Raw material 10,000 units Inspections 12 inspections Machine hours 600 machine hours Required: Prepare a schedule showing the computations of the activity- based overhead rates per cost driver. (2 points)