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Castle Dale Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Line Item Description Amount Setting up equipment $572,000 Other
Castle Dale Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Line Item Description Amount Setting up equipment $572,000 Other overheard $3,120,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Castle Dale produces two products, Fudge and Cookies. Information on each product is as follows: Line Item Description Fudge Cookies Batches produced 16,000 890,000 Setup hours 10,400 2,600 Oven hours 2,600 18,200 Required: 1. Calculate the activity rate for (a) setting up equipment and (b) other overhead. Line Item Description Activity rate a. Setting up equipment $fill in the blank 1 per setup hour b. Other overhead $fill in the blank 2 per oven hour 2. H
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