What is the activity rate that would be used for material handling?

HINT: remember to apply the entry rules.

What is the activity rate that would be used for machinery set up$?$

HINT: remember to apply the entry rules.

What is the activity rate that would be used for Inspections?

HINT: remember to apply the entry rules.

Assign the manufacturing overhead for the past month to the two products using activity based costing. What is the overhead cost PER UNIT for PT Gears?

HINT: calculate the total overhead assigned to each product and then divide by the number of products produced to determine the overhead cost per unit!

Assign the manufacturing overhead for the past month to the two products using activity based costing. What is the overhead cost PER UNIT for XR Gears?

HINT: calculate the total overhead assigned to each product and then divide by the number of products produced to determine the overhead cost per unit!

Assume, instead, that the company used a plantwide overhead rate and the cost driver of direct labour hours.

The company has the following information:

Cost Driver: PT Gears $|$ XR Gears $|$Total

Direct labour hours: $540|1,260|1,800$

What is the plantwide rate per direct labour hour?

Assign the manufacturing overhead for the month to each product using the plantwide overhead rate.

What is the per unit overhead cost for PT Gears if the company used the plantwide rate?

HINT: remember the entry rules!

What is the per unit overhead cost for XR Gears if the company used the plantwide rate?

HINT: remember the entry rules!