Refer to the data given in problem 7.34. The company has implemented an activity-based costing system for its manufacturing overhead costs with the activity cost pools and activity diver data below:
Constellation plans to produce 1000 units of each model of fax machine.
Required:
1. For each activity, calculate the cost per unit of activity driver (e. g. the cost per setup).
2. Determine, under activity-based costing, the total overhead to be assigned to each product line.
3. Calculate, under activity-based costing, the overhead assigned per unit of each type of fax.
4. Prepare a table comparing the total product cost assigned to each type of fax machine using plantwide overhead rate, departmental overhead rates and activity-based costing. (This requirement relies on the solution to Problem 7.34.)
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