Wildhorse Industries has three activity cost pools and two products. It estimates production of 2,000 units...

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Wildhorse Industries has three activity cost pools and two products. It estimates production of 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Wildhorse accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Use of Cost Drivers per Product Estimated Activity Cost Pools Cost Drivers Overhead Estimated Use of Cost Drivers per Activity Product BC113 Product AD908 Machine setup Setups $23,400 39 23 16 Machining Machine hours 97,280 5,120 1,060 4,060 Packing Orders 30,680 520 200 320 Using the above data, do the following: (a) Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity Cost Estimated Pools Overhead Machine setup Machining Packing $ Estimated Use of Cost Drivers per Activity setups $ Activity-Based Overhead Rates per setu 1 per machine hours $ mac hr. orders A per orde Wildhorse Industries has three activity cost pools and two products. It estimates production of 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Wildhorse accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Use of Cost Drivers per Product Estimated Activity Cost Pools Cost Drivers Overhead Estimated Use of Cost Drivers per Activity Product BC113 Product AD908 Machine setup Setups $23,400 39 23 16 Machining Machine hours 97,280 5,120 1,060 4,060 Packing Orders 30,680 520 200 320 Using the above data, do the following: (a) Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity Cost Estimated Pools Overhead Machine setup Machining Packing $ Estimated Use of Cost Drivers per Activity setups $ Activity-Based Overhead Rates per setu 1 per machine hours $ mac hr. orders A per orde

Answer rating: 100% (QA)

To compute the activitybased overhead rates per cost driver we can use the following formula ... View the full answer