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Problem - 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.
Annual Overhead Data
Expected Use of Cost Drivers per Product
Activity Cost Pool
Cost Driver
Estimated Overhead
Expected Use of Cost Drivers per Activity
Product BC113
Product AD908
Machine set-up
Set-ups
$21,200
40
25
15
Machining
Machine hours
111,330
5,020
1,004
4,016
Packing
Orders
29,930
500
150
350
Prepare a schedule showing the calculations of the activity-based overhead rates per cost driver.
Prepare a schedule assigning each activity's overhead cost to the two products.
Calculate the overhead cost per unit for each product.
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