Answer:
- A1 = $12 A2 = $9.20 A3 = $1.50
- Total Overhead for Standart Product $267.16
- Total Overhead for Deluxe Product $163.48
Explanation:
First we will Calculate the rates:
This is done by adding the two product activity use to get the total cost driver.
Then we divide by the activity cost to get the rate:
![\left[\begin{array}{cccc}activity&cost&driver&rate\\1&93,000&7,750&12\\2&92,000&10,000&9,2\\3&8,700&5,800&1,5\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7Dactivity%26cost%26driver%26rate%5C%5C1%2693%2C000%267%2C750%2612%5C%5C2%2692%2C000%2610%2C000%269%2C2%5C%5C3%268%2C700%265%2C800%261%2C5%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Next we check the overhead per unit:
units/ activity use x rate = overhead for activity
<em>Standart Product Manufacturing Overhead</em>
36,375units /2,500 Use Activity 1 x $12 = $174.60
36,375units /4,500 Use Activity 2 x $9.20 = $74.37
36,375units /3,000 Use Activity 3 x $1.50= $18.19
Total Overhead for Standart Product $267.16
<em>Deluxe Product Manufacturing Overhead</em>
62,240units /5,250 Use Activity 1 x $12 = $83,14
62,240units /5,500 Use Activity 2 x $9.20 = $60,85
62,240units /2,800 Use Activity 3 x $1.50= $19,49
Total Overhead for Deluxe Product $163.48