Answer:
$480,000; $360,000; $1,080,000
Explanation:
Given that,
Allocated estimated overhead = $1,920,000
Expected use of cost drivers = 160,000 inspections
Widgets require = 40,000 inspections
Gadgets require = 30,000 inspections
Targets requires = 90,000 inspections
Overhead rate per activity:
= Total overhead ÷ Expected use of cost drivers
= $1,920,000 ÷ 160,000
= $12
Overhead assigned to Widgets:
= Overhead rate per activity × No. of inspections widgets require
= $12 × 40,000
= $480,000
Overhead assigned to Gadgets:
= Overhead rate per activity × No. of inspections gadgets require
= $12 × 30,000
= $360,000
Overhead assigned to Targets:
= Overhead rate per activity × No. of inspections targets require
= $12 × 90,000
= $1,080,000