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17 (10 questions on this) Housewise Inc. manufactures and distributes two types of household items. The items, Scrubbies and Squeegies, are manufactured on a common
17 (10 questions on this) Housewise Inc. manufactures and distributes two types of household items. The items, Scrubbies and Squeegies, are manufactured on a common assembly line by the same direct labourers. Different direct materials are used in each type and the machinery is retooled for each product. > 5: 19 20 22 23 26 I Until now, manufacturing overhead costs have been allocated on the basis of direct labour-hours using a plant-wide rate. However, the production manager has been reading about activity-based costing and wishes to institute it for Housewise's production operations. To that end, she has assembled the information below regarding production activities and manufacturing overhead costs for the month of September: Activity Centre Cost Driver Activity used in Activity used in Allocation Rate Scrubbies Squeegies Material # of parts Handling $1.00 per part 2,000 parts 1,300 parts Machining Machine hours $15.00 per hour 205 hours 300 hours Assembly Units started $1.60 per unit 1,000 units 1,300 units Inspection Number tested $2.00 per unit 100 units 1,200 units Direct costs: Labour (600 $12,000 $12,000 hours each) Materials $5,200 $2,600 BO Acti Go to Determine the total manufacturing cost of the scrubbies product line under activity based costing. It is not necessary to show your work
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