Crane Industries has three activity cost pools and two products. It estimates production of 3,000 units of Product BC113 and 1,400 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Crane accumulated the following data relative to those activity cost pools and cost drivers.
Use of Cost Drivers
Annual Overhead Data
per Product
Activity Cost Pool
Machine set-up
Machining
Packing
Cost Drivers
Set-ups
Machine hours
Orders
Estimated
Overhead
Estimated Use of
Cost Drivers per Activity
Product
Product
BC113 AD908
$ 21,200
40
25
15
110,440
5,020
1,004
4,016
30,000
500
150
350
(a)
Prepare a schedule showing the calculations of the activity-based overhead rates per cost driver.
Cost Pool
Estimated
MOH
Machine set-up
$
Machining
Packing
$
Estimated
Usage
Rate
$
per set-up
per machine hr.
per order