What is the manufacturing overhead costs

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Question - What is the manufacturing overhead costs for each part using activity- based costing, assuming each of the five cost pools represents a separate activity pool. Use the most appropriate activity driver for assigning activity costs to the two products.

 

Part A

Part B

Production Units

100,000

21,000

Selling Price

$58

$46

Overhead per unit(base on DL hours)

$12.82

$6.10

Materials and direct labor cost per unit

$17.06

$12.52

Number of production runs

20

40

Number of purchasing and receiving orders processed

80

200

Number of machine hours

25,500

12,000

Number of direct labor hours

50,000

5,000

Number of engineering hours

10,000

10,000

Number of material moves

100

80

Outdoor Adventure has monthly overhead of(just manufacturing) of $1,410,000, divided into the activities below

Setup costs

$60,000

Machine costs

350,000

Purchasing and Receiving costs

420,000

Engineering Costs

400,000

Materials handling cost.

180,000

Total

$1,410,000

Reference no: EM131764829

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