Question: please help with step by step solution Claire Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct

please help with step by step solution

Claire Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products.
Activity Pool Department Costs Cost Driver
Binding $257,922 Number of units
Printing 794,052 Machine hours
Product design 196,236 Change orders
General 641,700 None
Total overhead costs $1,889,910
Other information is as follows:
Tablets Books
Units 62,900 20,000
Direct materials cost per unit $2.86 $10.44
Direct labor cost per unit $3.87 $8.12
Direct labor hours 25,400 16,000
Machine hours 125,000 120,000
Change orders 1,200

2,000

Calculate ABC rates. (Round answers to 2 decimal places, e.g. 15.25.)
ABC rates
Binding $ 12.90/unit
Printing $ 6.62/machine hour
Product design

$ 98.12/change order

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