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Coronado, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats.

Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers per Activity
Designing $452,925 13,500 designer hours
Sizing and cutting 4,250,150 167,000 machine hours
Stitching and trimming 1,400,525 75,500 labor hours
Wrapping and packing 339,450 31,000 finished units

Required:
Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools.

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Tundexi

Answer:

Activity Cost Pools   Est. Overhead   Est. Use      Rate             Per

Designing                    $452,925         $13,500     $33.55   Designer hours

Sizing and cutting      $4,250,150       $167,000   $25.45   Machine hours

Stitching & trimming   $1,400,525       $75,500     $18.55    Labor hours

Wrapping & packing   $339,450         $31,000      $10.95    Finished units

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