Requirements:

1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product.

2. Compute the manufacturing cost per unit for each product.

3. How might McCabe's managers use the new cost information from it's activity-based costing system to better manage it's business?

McCabe Company produces mathematical and financial calculators and operates at capacity Data related to the two products follows, Click the icon to view the data.) Total manufacturing overhead costs are: Click the icon to view the overhead costs) Requirements 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product 2. Compute the manufacturing cost per unit for each product. 3. How might McCabe's managers use the new cost information from its activity-based costing system to better manage its business? Requirement 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product Begin by choosing a cost driver for each overhead cost pool Activity Cost driver Rate Machining Machine-hours per machine-hour Set up Production runs per production run Inspection Inspection-hours per inspection-hour Data Table - - Data Table Annual production in units Direct materials cost Direct manufacturing labor cost Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours Mathematical Financial 50.000 100,000 $ 150,000 $ 300,000 $ 100,000 $ 200,000 2,000 4,000 25,000 40.000 40 40 800 400 Total 325,000 96.000 34000 $ Machining costs Setup costs Inspection costs