Question 14

SabbyIndustries has three activity cost pools and two products. It expects to produce2,700units of Product SZ09 and1,500of Product NZ16. Having identified its activity cost pools and the cost drivers for each pool, Sabby accumulated the following data relative to those activity cost pools and cost drivers.

Activity Cost Pool Cost Driver Estimated Estimated Use SZ09 NZ16

Overhead of Cost Drivers

Machine set-ups Set-ups $78,540 170 130 40

Assembling Machine hours 328,700 17,300 10,400 6,900

Inspection Inspections 7,680 120 50 70

1.Calculate the overhead rates.

Machine set-ups $ _________________ per set-up

Assembling $ __________________ per machine hour

Inspection $ __________________ per inspection

2.Assign the overhead cost to the two products.

SZ09 $ _________________

NZ16 $ _________________