Task: Bass Corporation manufactures two products: A and B. The total indirect manufacturing overhead resource costs of $91,700 have been assigned to four activity cost pools that use the attached cost drivers:
Required:
a. Compute the unit activity costs for each of the cost drivers listed.
b. Assign the overhead costs to products A and B using activity-based costing.
| Product |
Number of Setups |
Machine Runs |
Packing Hours |
Orders |
|
|
|
|
|
| Product A |
40 |
70 |
2,000 |
150 |
| Product B |
20 |
140 |
3,000 |
250 |
|
|
|
|
|
| Cost per Pool |
$7,500.00 |
$4,200.00 |
$60,000.00 |
$20,000.00 |