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What is the allocation rate for trumpets per setup

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Musical Instruments Company manufactures two products (trumpets and trombones). Overhead costs ($175,000) have been divided into three cost pools that use the following activity drivers.


 Product Number of setups Machine hours Packing orders

Trumpets 50 1,500 150

Trombones 50 4,500 250

Cost per pool $60,000 $90,000 $25,000






Required (show all calculations):

a. What is the allocation rate for trumpets per setup using activity-based costing?

b. What is the allocation rate for trumpets per machine hours using activity-based costing?

c. What is the allocation rate for trumpets per packing order using activity-based costing?

 

 

Reference no: EM13508490

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