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Gonzalez Manufacturing - Actual Level of Activity

Gonzalez Manufacturing traced the following levels of activity to the products it manufactured during the first quarter of this year:

Actual Level of Activity

Activity Pool Cost per Activity Product A Product B
Machine setups $50/setup 500 setups 600
Inspection $15/inspection 3,165 insp. 2,155
Receiving $100 receipt 420 rec. 175
Factory $20/machine hour 19,250 hrs 14,300
Number of Units 20,000 17,500

Product C Product D
Machine setups 800 650
Inspection 780 3,000
Receiving 655 500
Factory 21,500 15,950
Number of Units 25,000 22,500

Determine the total overhead cost charged to each product for the quarter. In addition, calculate the overhead cost per unit.

Solution Summary

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$2.19