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Activity Cost Pools, Activity Rates, and Product Costs using Activity - Based Costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing
Activity Cost Pools, Activity Rates, and Product Costs using ActivityBased Costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activitybase information are provided as follows: Activity Activity Pool Cost Activity Base Procurement $ Number of purchase orders Scheduling Number of production orders Materials handling Number of moves Product development Number of engineering changes Total cost $ The estimated activitybase usage and unit information for two product lines was determined as follows: Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Change Orders Units Ovens Refrigerators Totals a Determine the activity rate for each activity cost pool. If required, round your answers to the nearest dollar. Procurement per purchase order $fill in the blank Scheduling per production order $fill in the blank Materials handling per move $fill in the blank Product development per engineering change order $fill in the blank b Determine the activitybased cost per unit of each product. Round your answers to the nearest cent. Ovens $fill in the blank per unit Refrigerators $fill in the blank per unit
Activity Cost Pools, Activity Rates, and Product Costs using ActivityBased Costing
Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activitybase information are provided as follows:
Activity Activity Pool Cost Activity Base
Procurement $ Number of purchase orders
Scheduling Number of production orders
Materials handling Number of moves
Product development Number of engineering changes
Total cost $
The estimated activitybase usage and unit information for two product lines was determined as follows:
Number of
Purchase Orders Number of
Production Orders Number of
Moves Number of
Engineering Change Orders
Units
Ovens
Refrigerators
Totals
a Determine the activity rate for each activity cost pool. If required, round your answers to the nearest dollar.
Procurement per purchase order $fill in the blank
Scheduling per production order $fill in the blank
Materials handling per move $fill in the blank
Product development per engineering change order $fill in the blank
b Determine the activitybased cost per unit of each product. Round your answers to the nearest cent.
Ovens $fill in the blank per unit
Refrigerators $fill in the blank per unit
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