BKM Foundry manufactures different kinds of equipment used by the aerospace, commer¬

cial aircraft, and electronic industries. Twenty different products are created using two ma¬

jor manufacturing processes: molding and assembly. The procurement and sustaining processes are also used in the plant. The activity and product relational tables are given below and on the following page (for simplicity, only two products of the twenty produced are shown in the product relational table):

Required:
1. Describe how activity and product relational tables are created.
2. Using the preceding tables, provide examples of the following:

a. Primary key

b. Concatenated key

c. Record

d. Activity attribute

e. Product attribute

f. An entity 3. Using the information from the relational tables, calculate pool rates for the molding process.
4. Using the pool rates computed in Requirement 3, assign molding process costs to Com¬
ponent A. What is the molding overhead cost per unit?

Transcribed Image Text:

ACTIVITY RELATIONAL TABLE: BKM FOUNDRY Activity Activity Name Process Level Activity Driver Activity Capacity Cost Designing molds Molding Product No. of products 20 $600,000 2 Making molds Molding Product No. of products 20 320,000 11 3456789012 Inspecting molds Molding Batch No. of setups 400 120,000 Setting up batches Molding Batch No. of setups 400 120,000 Engineering design Assembly Product Change orders 40 130,000 Materials handling Assembly Batch No. of subassemblies 400 90,000 Machining Assembly Unit Machine hours 200,000 225,000 8 Purchasing materials Procurement Batch Purchase orders 1,000 200,000 Receiving materials Procurement Batch Purchase orders 1,000 320,000 Paying suppliers Procurement Product No. of molds 20,000 180,000 Providing utilities Sustaining Facility Machine hours 20,000 20,000 Providing space Sustaining Facility Machine hours 20,000 50,000