ACCT232

Bob Russo, cost accounting manager for Hemple Products, was asked to determine the costs of the activities performed within the company's Manufacturing Engineering Department. The department has the following activities: creating bills of materiais (BOMsi. sfuiwina - anufacturing capabilities, improving manufacturing processes, training employees, and designing tools. The ........ ierform one unit of each activity are provided below. The activity, designing tools, uses the number of tools designed as the activity driver. Using a traditional approach, the cost of the designing tools activity was determined to be $185,000 with an expected activity output of 1,000 for the coming year. During the fint week of the year, two jobs (Job 150 and Job 151 ) had a demand for 10 and 20 new toctively. 20 new too 1. Calculate the capacity cost rate for the Manufacturing Engineering Department. Round your answer to the nearest cent. s per hour 2. Using the capacity cost rate, determine the activity rates for each activity. Round your answers to the nearest cent. 3. Calculate the cost of designing tools that would be assigned to each job using the TDABC-derived activity rate and then repeat using the traditional ABC rate. 4. Now suppose that time for creating BOMs is 0.5 for a standard product but that creating a BOM for a custom product adds an additional 0.3 hour. txpress the time equation for this added complexity. Round your answers to two decimal places. Place the amounts left to right, lowest to highest. 6oM time = 4. Now suppose that time for creating BOMs is 0.5 for a standard product but that creating a BoM for a custom product adds an additional 0.3 hour. Express the time equation for this added complexity. Round your answers to two decimal places. Place the amounts left to right, lowest to highest. BOM time = Calculate the activity rate for the activity of creating a BOM for custom products. Round your answer to the nearest cent