Calculate overhead rates using activity-based costing pools

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Reference no: EM131203768

Ones Manufacturing Company makes two products. The company’s budget includes $486,680 of overhead. In the past, the company allocated overhead based on estimated total direct labor hours of 21,160. Jones recently implemented an activity-based costing system and had determined that overhead can be broken into three overhead pools: processed purchase orders, machine setups, and good shipped. The following is a summary of company information: Estimated Cost Estimated Activities Orders processed $84,800 5,300 orders Machine setups 14,040 540 machine hours Shipping 26,509 54,100 shipments $125,349 Calculate the company’s overhead rates using the activity-based costing pools. (Round shipping cost per shipment to 2 decimal places, e.g. 1.64.) Orders $ per order processed Setups $ per machine hour Shipping $ per shipment

Reference no: EM131203768

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