Pool 2 related to parts administration which will be

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Pool 2: Related to parts administration, which will be equally shared by all 3 product lines. Pool 3: Machine related costs. These are driven by machine hours Pool 4: Cost related to executing a production order (this would include production orders and first part inspections), allocated using the number of batches. Pool 5: Costs related to inventory, receiving and shipping. These costs would be allocated using the number of transactions per product line (= components × number of transactions).
B. Compute the amounts in the five cost pools and the rate per driver unit for each cost pool. the number of transactions per product line (= components × number of transactions). Pool 6: Facility level costs: You decide not to allocate these costs to individual product lines at all, reasoning that these costs are not controllable at the product level.
Step 7: Rate for facility level costs 1/3 to each product (pool 6) = $15,174.33
C. Next determine the total amount of overhead allocated to each of the 3 product lines. : : :

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