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Activity-Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures small kitchen appliances. The pX per dlh 4.00 Test and Pack Activity X per setup 22.60 Setup Activity b. Determine the total factory overhead and factory ov

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Answer #1

a) Overhead rate

Assembly activity = 186000/3000 = 62 per DLH

Test and pack department = 120000/3000 = 40 per DLH

Setup activity = 162000/180 = 900 per setup

b) calculate total factory overhead and overhead cost per unit

Blender Toaster oven
Assembly products 750*62 = 46500 139500
Test and pack department 2250*40 = 90000 30000
Setup 135*900 = 121500 40500
Total factory overhead 258000 210000
Units 7500 7500
Overhead cost per unit 34.40 28
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