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Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these
Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Basic Advanced Total Units produced 420,000 Prime costs 140,000 $10,920,000 140,000 $46,200,000 $57,120,000 Machine hours 700,000 840,000 Engineering hours 200 1,800 2,000 2,000 Receiving orders 500 1,500 Inspection hours 900 1,800 2,700 Overhead costs: Machining $10,920,000 Engineering 1,040,000 Receiving 480,000 Inspecting products 297,000 Required: 1. Calculate the four activity rates. Machining rate 13 per machine hour 520 per hour Engineering rate s Receiving rate 240 per order Inspecting rate 110 per hour 2. Calculate the unit costs using activity rates. Round your answers to the nearest cent. Unit cost Basic 93.30 x per unit X
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