Chapter 6 Applications Harrison Corp. Assume Harrison Corp. has the following predicted INDIRECT costs and cost drivers for the year for the given activity cost pools: Moulding Machining Shearing Department Department Department Cost Driver Materials Handling $10,000 $8,000 $6,000 Materials Moves Machine Setups $15,000 $12,000 $10,000 Machine Setups Quality Control $5,000 $15,000 $20,000 Inspection Hours $30,000 $35,000 $36,000 Total Costs $101,000 The following activity predictions were also made for the year: Moulding Machining Shearing Total Materials Moves 5,000 4,000 3,000 Machine Setups 1,500 1,200 1,000 Inspection Hours 500 1,500 2,000 12,000 3,700 4,000 Assume the cost per unit of activity for a given activity DOES NOT VARY between departments Assume the following costs and activity data for the production of a batch of 100 units of EACH of the two products Product A Product B Direct Materials Cost $6,000 $9,000 Direct Labor Cost $4,500 $3,000 Material Moves - Moulding Material Moves - Machinin Material Moves - Shearing Total Materials Moves 150 180 Machine Setups Inspection Hours 30 50 50 50 60 60 60 8 10 40 a. Determine the cost of each unit of Products A&B, assuming a PLANTWIDE overhead rate based on MATERIAL MOVES. b. Determine the cost of each unit of Products A & B, assuming DEPARTMENT overhead rates based on MATERIALS MOVES. c. Determine the cost of each unit of Products A & B, assuming ACTIVITY-BASES overhead rates for each ACTIVITY