Activity Purchase Orders Inspections Assembling Purchasing Inspections Assembling Cost Driver No. of Purchase Orders No. of Receiving Reports No. of Parts Estimated Total Driver Overhead Volume $ 150,000 2,500 $ 400,000 1,500 4,000 4,000 $ 200,000 Cost Drivers by Product Product Club Product Chub 1,000 6,000 4,000 10,000 8,000 You expressed agreement with the new Production Manager and was asked to present results for the following for the month of August 2022. Required: a. Compute the predetermined overhead rate for each cost pool. b. Compute total cost assigned for Purchase Orders, Inspections and Assembling costs assigned to each product, using activity-based costing. c. Compute the cost per unit for each product.

Activity Purchase Orders Inspections Assembling Purchasing Inspections Assembling Cost Driver No. of Purchase Orders No. of Receiving Reports No. of Parts Estimated Total Driver Overhead Volume $ 150,000 2,500 $ 400,000 1,500 4,000 4,000 $ 200,000 Cost Drivers by Product Product Club Product Chub 1,000 6,000 4,000 10,000 8,000 You expressed agreement with the new Production Manager and was asked to present results for the following for the month of August 2022. Required: a. Compute the predetermined overhead rate for each cost pool. b. Compute total cost assigned for Purchase Orders, Inspections and Assembling costs assigned to each product, using activity-based costing. c. Compute the cost per unit for each product.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 39P: Randy Harris, controller, has been given the charge to implement an advanced cost management system....

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