Question: Weber Industries has three activity cost pools and two products. It expects to produce 3,000 units of Product BC113 and 1,400 of Product AD908. Having
Weber Industries has three activity cost pools and two products. It expects to produce 3,000 units of Product BC113 and 1,400 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Weber ac- cumulated the following data relative to those activity cost pools and cost drivers.
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Instructions
(a) Prepare a schedule showing the calculations of the activity-based overhead rates per cost driver.
(b) Prepare a schedule assigning each activity's overhead cost to the two products.
(c) Calculate the overhead cost per unit for each product. (Round to nearest cent.)
(d) Comment on the comparative overhead cost per product.
Expected Use of Cost Drivers per Product Annual Overhead Data Estimated Expected Use ofProduct Product Maethn ot DriversOverhepetd Activity Cost Pool Cost Drivers Overhead Cost Drivers per Activity BCl113 AD908 15 1,000 4,000 Machine set-up Machining Packing Set-ups Machine hours 110,000 Orders $ 16,000 40 5,000 500 25 30,000 150 350
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a Estimated Estimated Cost Pool MOH Usage Rate Machine setup 16000 40 400 per s... View full answer
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