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.
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.)