Activity Setup Purchasing Budgeted Cost 114000 55000 54000 C

Activity Setup Purchasing Budgeted Cost $114,000 $55,000 $54,000 Cost Driver setup hours purchase orders packages Product A 29.200 46,100 0,700 63,700 41,100 51,300 Submit Answer Tries 0/3 Send Feedba 6 0 2

Solution

Activity Overhead rates Setup 1.23 =114000/(29200+63700) Purchasing 0.63 =55000/(46100+41100) Packaging 0.44 =54000/(70700+51300) Setup 78351 =63700*1.23 Purchasing 25893 =41100*0.63 Packaging 22572 =51300*0.44 Overhead allocated to Product B 126816