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
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
Chapter1: Financial Statements And Business Decisions
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