16) Lillys Industries manufactures two products: mole traps and mouse traps. The manufacturing operation involves three overhead activitiesproduction setup, material handling, and general factory activities. Because they are a sophisticated company, Lyons uses activity based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities:

Required:

What is the activity rate for production setup?

What is the activity rate for material handling?

What is the activity rate for general overhead?

What is the total overhead allocated to Mole Traps using activity-based costing?

Below is a somewhat similar example problem.

EXAMPLE:

Each product's total activity in each of the three areas are as follows: Chapter 11: 5) Halter Intemational manufactures two proslucts: chairs ard banches. The manufacturing operation invclves three overhead activities - production setup. materia handing, and human resources. Halter uses activity-based costing lo allocate overhead to products. An activity analys of the cverhead revealed the folowing estimated costs and activity bases for these activities: Each product's total activity in each of the three areas are as follows: What is the :otal overhead allocated to Chairs using activity-based costing? setups =480,000500=4160 per setup Moves =c2,000460=1200 per Move