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    Bob's tire activity rates, unit product costting

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    Using activity costs given, develop activity rates, determine product cost per one unit with the ABC rate, product cost of one unit using plant-wide overhead rate.

    See the attached file for the full question.

    1. Develop activity rates for each of the four activities of Bob's.

    2. What is the product cost for ONE UNIT of A-1 using ABC rates for applying overhead.

    3. What is the product cost of one unit of A-1 if Bob's uses a plant-wide overhead rate based on machine hours (assume 5,000 machine hours plant-wide).

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    Solution Summary

    Your tutorial is in excel. Click in cells to see computations. Instructional notes are left for you along with the schedules showing the process.