ACCOUNTING-Midtown Inc. uses an activity based costing system contains the following

Midtown Inc. uses an activity based costing system contains the following six activity cost pools: Activity Cost PoolEstimated Overhead CostsEstimated Activity Indirect Labor$ 1,100,000 100,000Direct Labor Hours Machine processing 120,000 40,000Machine Hours Machine setups 675,000 15,000Setups Production orders 1,350,000 9,000Orders Shipments 1,470,000 12,250Shipments Product Testing 405,000 450ProductsTotal: $ 5,120,000Activity data have been supplied for the following two jobs:JOB 485JOB 486Number of units produced400950Direct Labor Hours850700Machine Hours1,4751300Setups52Orders83Shipments141Products22Required:Calculate the activity rates for each of the pools.Determine the amount of overhead to be allocated to each job.Calculate the amount of overhead per unit produced.

 

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