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Activity Cost Pools, Activity Rates, and Product Costs using Activity-Based Costing Hipster Home Appliances Inc., is estimating the activity cost associated with producing ovens and
Activity Cost Pools, Activity Rates, and Product Costs using Activity-Based Costing Hipster 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 employee The budgeted activity cost and base information are provided as follows The estimated activity-base usage and unit information for two product lines was determined from corporate records as follows: a. Determine the activity rate for each activity cost pool. Procurement (per purchase order) exist _____________ Scheduling (per production order) exist ____________ Material handling (per move) exist _________________ Product development (per engineering change) exist _________________ b. Determine the activity-based cost per unit of each product. Ovens exist ______________ per unit Refrigerators exist ______________ per unit
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