Babytime, Inc., manufactures two products, Piglets and Rattles. Piglets are the more complex of the two products, requiring more direct labor time and more machine time per unit than Rattles. Babytime, Inc., manufactures two products, Piglets and Rattles. Piglets are the more complex of the two products, requiring more

direct labor time and more machine time per unit than Rattles.

Manufacturing overhead is currently assigned to the products on the basis of direct labor hours. The company has gathered some

activity information and is interested in the differences between its present costing method and activity$-$based costing. All overhead

costs should be allocated to the products. The overhead cost pools and activity drivers are as follows:

Other product information is as follows:

The managers at Babytime, Inc., were surprised that the activities associated with the production of Piglets were more extensive than

they had imagined. They wondered if anything could be done to reduce the cost of producing Piglets.

Compare the number of activities $($setups$,$ purchase orders, and machine hours$)$ consumed per unit by Rattles and Piglets. $($Round

answers to $3$ decimal places, e$.$g$.15\mathrm{.}251.)$ The managers at Babytime, Inc., were surprised that the activities associated with the production of Piglets were more extensive than

they had imagined. They wondered if anything could be done to reduce the cost of producing Piglets.

Compare the number of activities $($setups$,$ purchase orders, and machine hours$)$ consumed per unit by Rattles and Piglets. $($Round

answers to $3$ decimal places, e$.$g$.15\mathrm{.}251.)$

Rattles

Setups

Materials Purchasing

Machining$/$fabricating

setups per unit

purchase orders per unit

machine hours per unit

Piglets

setups per unit

purchase order

machine hours

eTextbook and Media

Identify whether each of the following activities is value$-$added or non$-$value$-$added.

i$.$ Setting up production machines

ii$.$ Preparing purchase orders

iii. Operating production machines

eTextbook and Media

Manufacturing overhead is currently assigned to the products on the basis of direct labor hours. The company has gathered some activity information and is interested in the differences between its present costing method and activity

$-$

based costing. All overhead costs should be allocated to the products. The overhead cost pools and activity drivers are as follows: