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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

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