Reference no: EM131663975

Question: ABC, process costing. Sander Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here:

Total manufacturing overhead costs are as follows:

                                   Total

Machining costs            $360,000

Setup costs                   108,000

Inspection costs             117,000

1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product.

2. Compute the manufacturing cost per unit for each product.

3. How might Sander's managers use the new cost information from its activity-based costing system to better manage its business?