Reference no: EM13142681
Vid-saver, Inc. Has five activity cost pools and two products (a budget tape rewinder and a deluxe tape rewinder). Information is presented below:
Activity Cost Pool,Cost Driver,Est. Overhead,Budget,Deluxe.
Ordering and Receiving=Orders=$110,000=600=400.
Machine Setup=Setups=297,000= 500= 400.
Machining=Machine hours=1,000,000=150,000=100,000.
Assembly=Parts=1,200,000=1,200,000= 800,000.
Inspection=Inspections=300,000=550=450.
Instructions:
Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. Round your answer to the nearest cent.
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