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Compute the overhead cost per unit for each product

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Reference no: EM132553196

Warner Manufacturing has three activity cost pools and two products (a Standard screen and a Flat screen). Information is presented below:

                                                       Cost Drivers by Product

Activity  Cost Pool            Cost Driver            Est. Overhead              Standard           Flat

Ordering and Receiving             Orders                 $ 240,000              600              200

Machine Setup                         Setups                242,000               600              500

Inspection                               Inspections            240,000           400           350

Instructions

Question 1: Compute the overhead cost per unit for each product under the proposed activity based costing. Production is 400,000 units of Standard and 125,000 units of Flat.( Round to the nearest cent. all necessary schedules).

Reference no: EM132553196

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