The Klamath Corp. produces two products, saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are
The Klamath Corp. produces two products, saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as follows:
a. Determine the activity rate for each activity.
Stamping...................$ 20 per machine hour
Assembly...................$ 20 per labor hour
Setup..........................$ 2,000 per setup
b. Determine the overhead cost per unit for each product.
Saws $_______per unit
Drills $_______per unit
Activity: Stamping, Assembly, Setup, Activity Base: Machine hours, Labor hours, Number of setups. Budgeted Costs: $200,000, $400,000, $30,000, Saws: 4,000, 7,000, 3. Drills: 6,000, 13,000, 12, Activity Base Machine hours Labor hours Number of setups Total 10,000 20,000 15
Step by Step Solution
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Step: 1
a Calculation of activity rate Stamping Budgeted Costs Machine tour Stamping 200000 1000...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
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