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Warner Manufacturing has three activity cost pools and two products (a Standard screen and a Flat screen). Information is presented below:
Cost Drivers by Product
Activity Cost Pool Cost Driver Est. Overhead Standard Flat
Ordering and Receiving Orders $ 240,000 600 200
Machine Setup Setups 242,000 600 500
Inspection Inspections 240,000 400 350
Instructions
Question 1: Compute the overhead cost per unit for each product under the proposed activity based costing. Production is 400,000 units of Standard and 125,000 units of Flat.( Round to the nearest cent. all necessary schedules).
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