Consider the following additional information about these two products. If activity-based costing is used to...
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Accounting
Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. (Round your final answers to 2 decimal places.)
a. Compute overhead activity rates
Activity
Activity Rate
Machine setup
per setup
Parts handling
per part
Quality inspection
per inspection
b. Allocate overhead to Product A, B and compute overhead cost per unit
Allocated Cost
Activity
Product A
Product B
Machine setup
Parts handling
Quality inspection
Total allocated cost
Units produced
Overhead cost per unit
c. Product cost per unit using activity-based costing
Per Unit
Product Cost per Unit
Product A
Product B
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