Exercise 17-15 Activity-based costing rates and allocations LO P3 A company has two products: standard and...

Exercise 17-15 Activity-based costing rates and allocations LO P3

A company has two products: standard and deluxe. The company expects to produce 38,375 standard units and 64,240 deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools.

			Budgeted Activity of Cost Driver
Activity Cost Pool	Budgeted Cost		Standard		Deluxe
Activity 1	$	108,500		2,500	5,250
Activity 2	$	112,000		4,500	5,500
Activity 3	$	98,600		3,000	2,800

Required:
1. Compute overhead rates for each of the three activities.
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 units?
(Round activity rate and cost per unit answers to 2 decimal places.)

Expert Solution

ekkarill92 answered 3 months ago

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