BKM Foundry manufactures different kinds of equipment used by the aerospace, commercial aircraft, and electronic industries. Twenty different products are created using two major manufacturing processes: molding and assembly. The procurement and sustaining processes are also used in the plant. The activity and product relational tables follow (for simplicity, only two products of the 20 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. Entity 3. Using the information from the relational tables, calculate activity rates for the molding process. Combine activities with the same driver into one cost pool.
4. Using the activity rates computed in Requirement 3, assign molding process costs to Component A. What is the molding overhead cost per unit?

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Activity Relational Table: BKM Foundry Activity Number Activity Activity Name Process Level Driver Activity Capacity Cost 123456789012 Designing molds Molding Product No. of products 20 $600,000 Making molds Molding Product No. of products 20 320,000 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 Machining Assembly Batch No. of subassemblies 400 90,000 Assembly Unit Machine hours 200,000 225,000 Purchasing materials Receiving materials Paying suppliers Procurement Batch Purchase orders 1,000 200,000 Procurement Batch Purchase orders 1,000 320,000 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 Product Relational Table: BKM Foundry Activity Activity Product Product Driver Driver Activity Number Name Number Name Usage 1 Component A 1 Component A 1 Component A 1 Component A 1 Component A 1 Component A 1 Component A 1 Component A 2 Component B 2222222 Component B Component B Component B Component B 1234567812345678 Units 1,000 No. of molds 2,000 3 No. of setups 10 Change orders 4 No. of products 1 Purchase orders No. of subassemblies Machine hours 50 2 800 Units 2,000 No. of molds 6,000 Component B Component B Component B No. of setups Change orders No. of products Purchase orders No. of subassemblies Machine hours 20 3 1 60 3 1,000