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 accumulated the following data relative to those activity cost pools and cost drivers.

Weber Industries has three activity cost pools and two products.

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 Product Product Annual Overhead Data Estimated Expected Use of Activity Cost Pool Machine set-up Machiniugy Packing Cost Drivers Overhead Cost Drivers per Activity Set-ups Machine hours 110,000 Orders BC113 25 1,000 150 AD908 15 4,000 350 20,000 40 5,000 500 30,000

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