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Activity Rates Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four
Activity Rates Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera Cutting hours 2,000 5,400 Assembly hours 2,700 4,650 Inspection hours 600 2,430 Rework hours 250 450 The following activity data have been collected: Cutting $148,000 Assembling $330,750 Inspecting $60,600 Reworking $42,000 Required: Calculate the activity rates that would be used to assign costs to each product. If required, round your answers to the nearest cent. S S Cutting: Assembling: Inspecting: Reworking: per cutting hour per assembling hour per inspecting hour per reworking hour Activity-Based Customer Costing Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small, separately owned furniture stores and one is a retail chain. The retail chain buys 60% of the mattresses produced. The 19 smaller customers purchase mattresses in approximately equal quantities, where the orders are about the same size. Data concerning Sleepeze's customer activity are as follows: Large Retailer Smaller Retailers 108,000 72,000 Units purchased Orders placed 36 3,600 Number of sales calls 18 882 Manufacturing costs $43,200,000 $28,800,000 Order filling costs allocated* $1,636,200 $1,090,800 Sales force costs allocated* $864,000 $576,000 *Currently allocated on sales volume (units sold). Currently, customer-driven costs are assigned to customers based on units sold, a unit- level driver. Required: Assign costs to customers by using an ABC approach. Round your answers and all intermediate calculations to the nearest dollar. Order filling rate per order Selling call rate per sales call Cost assignment: Large retailer Smaller retailers V
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