Sofia Clothing Company produces two products, Jackets and Pants in a small manufacturing plant. During June, Sofia Clothing produced 100 units of Jackets and 100 units of Pants incurring a total manufacturing overhead cost of $21,000. Assume Sofia Clothing uses Activity Based Costing and that its total manufacturing overhead costs of $21,000 were assigned to the following: ABC cost pools: Material inspections & preparation ($10,000) $10 / pound of raw materials Material moves ($2,000) $25 / move Machine setups ($3,000) $150 / setup Machine operations ($6,000) $40 / machine hour Jackets and Pants used the following quantities of the four activity drivers: Jackets Pants Pounds of raw materials 500 500 Material moves 50 30 Setups 12 8 Machine hours 90 60 The overhead costs assigned to each unit of Jackets and Pants using the Activity based costing were:
