x Pearson Session Ended Dpi pearsonedcom ecure httpsnewcon

x \\ @ Pearson Session Ended ×,Dpi pearsonedcom ecure https://newconnect.mheducation.com/flow/connecthtml r 17 A company has two products standard and deluxe The company expects to produce 36,375 standard units and 62.240 deluxe units uses activity-based costing and has prepared the following three activity cost pools analysis showing budgeted cost and cost driver activity for each of its Budgeted Activity Activity 2 Book Activity 3 92,000 87,000 2, 869 Required: 1 Compute overheed rates for each of the three activites 2 What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe unes? Round activity rate and cost per unit answers to 2 decimal places) erences1 Type here to search

Solution

Activity Expected Expected Activity Rate costs Activity driver * Activity 1 $93,000 7750 $12.00 Activity 2 $92,000 10000 $9.20 Activity 3 $87,000 5800 $15.00 * Expected activity driver is the sum of budgeted     activity of cost driver for the two products. Standard Actvity Activity Activity Rate Allocated cost Driver 1 2500 $12.00 $30,000.00 2 4500 $9.20 $41,400.00 3 3000 $15.00 $45,000.00 Deluxe Actvity Activity Activity Rate Allocated cost Driver 1 5250 $12.00 $63,000.00 2 5500 $9.20 $50,600.00 3 2800 $15.00 $42,000.00