Sabby Industries has three activity cost pools and two products

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 Overhead Expected use of cost driver SZ09 NZ16

Machine setup Setups $78,500 170 130 40

Assembling Machine hours $331,000 17,300 10,400 6,900

Inspection Inspections $7,700 120 50 70

Calculate the overhead rates. (Round answers to 2 decimal places, e.g. 15.25.)

Machine set up $________ per set up

Assembling$___________ per machine hour

Inspection $____________ per inspection

Assign the overhead cost to the two products. (Round answers to 2 decimal places, e.g. 15.25.)

SZ09 $_____

NZ16 $_____

Here’s the SOLUTION

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