Reference no: EM132509620

Sabby Industries has three activity cost pools and two products. It expects to produce 2,700 units of Product SZ09 and 1,500 of Product NZ16. Having identified its activity cost pools and the cost drivers for each pool, Sabby accumulated the following data relative to those activity cost pools and cost drivers.

Activity Cost Pool                 Cost Driver          Estimated             Estimated Use             SZ09           NZ16

                                                                                                                                                Overhead      of Cost Drivers

Machine set-ups                        Set-ups          $78,540                      170                130                   40

Assembling                                Machine hours       328,700                   17,300         10,400                6,900

Inspection                                Inspections             7,680                     120            50                      70

Question 1: Calculate the overhead rates.

Question 2: Assign the overhead cost to the two products.