Question
Can I have step by step on this question? Fox Hunting Gear manufactures two products: camouflage jackets and camouflage hats. The company makes 50,000 jackets
Can I have step by step on this question?
Fox Hunting Gear manufactures two products: camouflage jackets and camouflage hats. The company makes 50,000 jackets and 20,000 hats each year. Information for overhead costs and for the two products appears below.
Activity |
Driver | Estimated Total Overhead Cost |
Jackets |
Hats |
Setups | # of setups | $ 200,000 | 500 setups | 1,500 setups |
Ordering parts | # of parts | 300,000 | 60,000 parts | 40,000 parts |
Machining | # of machine hours | 600,000 | 12,000 machine hrs. | 6,000 machine hrs. |
Inspections | # of inspections | 400,000 | 10,000 inspections | 40,000 inspections |
Shipping | # of shipments | 300,000 | 10,000 shipments | 10,000 shipments |
Total overhead |
| $1,800,000 |
|
Fox Hunting Gear uses activity-based costing. What is the rate per inspection that should be used to assign inspection cost to hats?
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