Activity Cost Pools Ordering and Receiving Machine Setup Machining Assembly Inspection Budget Deluxe $ Cost Driver Orders $ Setups Machine hours Parts Inspections Overhead cost per unit Est. Overhead $144,000 311,400 per unit 1,023,000 1,624,000 314,000 per unit Budget Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round per machine hour and per part values to 3 decimal places, eg. 52.711. Round overhead cost per unit to 2 decimal places, eg 12.25 and cost assigned to O decimal places, e.g. 2,500) 600 500 Deluxe 550 400 400 150,000 100,000 1,200,000 800,000 450

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A14

Activity Cost Pools
Ordering and Receiving
Machine Setup
Machining
Assembly
Inspection
Budget $
Deluxe
Cost Driver
Orders
$
Setups
Machine hours.
Parts
Inspections
Overhead cost per unit
Est. Overhead
per unit
$144,000
per unit
311,400
1.023,000
1,624,000
314,000
Est. Use of Cost Drivers
Budget
600
500
Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round per
machine hour and per part values to 3 decimal places, eg. 52.711. Round overhead cost per unit to 2 decimal places, e.g. 12.25 and cost
assigned to O decimal places, e.g. 2,500.)
Deluxe
550
400
400
150,000 100,000
1,200,000 800,000
450
Transcribed Image Text:Activity Cost Pools Ordering and Receiving Machine Setup Machining Assembly Inspection Budget $ Deluxe Cost Driver Orders $ Setups Machine hours. Parts Inspections Overhead cost per unit Est. Overhead per unit $144,000 per unit 311,400 1.023,000 1,624,000 314,000 Est. Use of Cost Drivers Budget 600 500 Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round per machine hour and per part values to 3 decimal places, eg. 52.711. Round overhead cost per unit to 2 decimal places, e.g. 12.25 and cost assigned to O decimal places, e.g. 2,500.) Deluxe 550 400 400 150,000 100,000 1,200,000 800,000 450
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