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Activity Table - Omega Complete the Activity Table for Omega. 1. Determine the activity rate for each activity. Enter these rates in the Activity Rate
Activity Table - Omega Complete the Activity Table for Omega. 1. Determine the activity rate for each activity. Enter these rates in the Activity Rate columns." 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with Omega.* *If required, round all per-unit amounts to the nearest cent. Activity- Omega Activity Base Usage X Activity Rate Production mh $ /mh Setup setups $ /setup Material handling parts $ /part Inspection Product Engineering Total activity cost Number of units Activity cost per unit insp. hours $ /hour eng. hours /hour $ Shaded cells have feedback. X Activity Cost Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: 1 2 Production 3 Setup 4 Material handling 5 Inspection 6 Product engineering 7 Total Activity Activity Cost Pool $270,840.00 98,945.00 10,604.00 44,100.00 139,380.00 $563,869.00 The activity bases identified for each activity are as follows: Activity Production Activity Base Machine hours Setup Number of setups Material handling Number of parts Inspection Number of inspection hours Product engineering Number of engineering hours The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Machine Number of Number of Number of Number of Hours Setups Parts Inspection Hours Engineering Hours Units Alpha 1,061 55 84 467 130 1,341 Beta 767 125 158 281 183 927 Omega 392 205 240 232 192 542 Total 2,220 385 482 980 505 2,810 Each product requires 40 minutes per unit of machine time. Activity Table - Alpha Complete the Activity Table for Alpha. 1. Determine the activity rate for each activity. Enter these rates in the Activity Rate columns.* 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with Alpha.* *If required, round all per-unit amounts to the nearest cent. Activity- Activity Base Alpha Activity Usage X Production mh $ Rate /mh Setup setups $ /setup Material handling parts $ /part Inspection insp. hours $ /hour Product Engineering eng. hours $ /hour Total activity cost Number of units Activity cost per unit Activity Cost Activity Table - Beta Complete the Activity Table for Beta. 1. Determine the activity rate for each activity. Enter these rates in the Activity Rate columns.* 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with Beta.* *If required, round all per-unit amounts to the nearest cent. Activity- Activity Base Beta Activity Usage Production mh $ Setup setups $ Material handling parts $ Rate /mh /setup /part Inspection insp. hours $ /hour Product Engineering eng. hours $ /hour Total activity cost Number of units Activity cost per unit $ $ Shaded cells have feedback. X Activity Cost
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