Question

Required:

1. Using the pool rates and the information from the product relational table, calculate the unit overhead cost for each product.

2. Using the pool rates and the information from. the product relational table,, calculate the pverhead cost dor each activity driver.

$24 B. Green Mountain Manufacturing has recently installed an activity-based relational data base. Using the information contained in the activity relational table, the following pool rates were computed: $400 per purchase order per machine hour, Process R per machine hour, Process S $80 per engineering hour per packing order per square foot $30 $200 Two products are produced by Green Mountain: Normal and Excellent. Each product has an area in the plant that is dedicated to its production. The plant has two manufacturing processes, the Normal process (Process R) and the Excellent process (Process S). Other processes include engineering, product handling, and procurement. The product relational table for Green Mountain is as follows: Normal Product: Activity Driver # Name Activity Usage Units 800,000 Purchase orders 1,000 Machine hours 320,000 Engineering hours 5,000 Packing orders 400,000 Square footage 6,000 Excellent Product: Activity Driver # Name Activity Usage Units 100,000 Purchase orders 500 40,000 Machine hours Engineering hours Packing orders Square footage 6,000 100,000 4.000

Answer 1

1. The question is asking to calculate the unit overhead cost for each product that is for normal product and excellent product and also it is asking cost for each activity driver.
2. The cost for each activity driver can be found in the image attached.
3. Cost per product is, elaboration can be found in the attached image,

• Per normal product = 14.1 per unit
• Per excellent product = 30.8 per unit.

Answer alarlatono Ovenheods nit Pలా Partonlons NOmal Product Excellet Podust Pchage odens 4a00,000 200,000 CaroOx purchase Oxders L00X1000) G 00 x 500 machine 7,6.80,000 ఆ గవ4) Cest Coo of howrs CoOc0x30 Cost per hoa Engncesing Cao. hours cost 00,000 480,000 (SOn8ం C6000 80 cost per hous) OPackg cast Ceackerg odey xper o 600 000 400,000 ClOO.000 9 Suase ootago 1,200000 300,000 C&o00x200 H2 80000 C To tal Oueheads ఆం80 units 800, 000 100,000 No. Cht auashesad cost C2 80,000 g00,00 t00,000