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Canton's Corp. manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period: Cost Pool
Canton's Corp. manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period: Cost Pool Materials handling Machine maintenance Setups Inspections Overhead Costs Activity-cost driver $42,000 97142 orders $327,000 15,011 maintenance hours $233,000 43,801 setups $138,000 23,762 inspections Production Estimates Regular 11,000,000 units Jumbo 22,000,000 units Machine-hours 300,000 mh Labor-hours 600,000 th Expected direct costs amounts to $938,000 for the period. Support cost requirements of both products are substantially different from one another. The company uses an ABC costing system. The inspections activity-cost driver rate is (Round final answer to the nearest hundredth decimal place.)
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