Abc Formulas

Question 0

What are the headings for assigning each activity’s overhead cost to each product.

Answer 0

Activity c pools| exp use if c pool| x | activity based OH rate| =| cost assigned.

Do it for each item

Question 1

How do you calculate the overhead rate

Answer 1

Cost pool. Estimated overhead / estimated use of cost drivers

Question 2

What are the totals for assigning each activity’s overhead cost to each product

Answer 2

Total costs assigned (a)
Units produced (b)
OH cost / unit (a/b)