Coats Galore, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats. Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools.
Activity Cost Pools Estimated Expected Overhead Cost Use of Drivers per Activity
|
Designing |
450,000 |
12,000 designer hours |
|
Sizing and cutting |
4,000,000 |
160,000 machine hours |
|
Stitching and trimming |
1,440,000 |
80,000 labor hours |
|
Wrapping and packing |
336,000 |
32,000 finished units |