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Chegg is not the answer Inc., a manufacturer of a variety of products, uses an activity-based costing system. Information from its system for the
Chegg is not the answer Inc., a manufacturer of a variety of products, uses an activity-based costing system. Information from its system for the year for all products follows: Activity Cost Pool Assembly Inspection Packaging Total Cost $573,500 $393,750 $45,500 Activity 25,500 machine hours 9,100 inspection hours 4,500 orders Chegg is not the answer Inc. makes 775 of its product X14 a year, which requires a total of 50 machine hours, 25 inspection hours, and 19 orders. Product X14 requires $77.00 in direct materials per unt and $65.00 in direct labor per unit. Product X14 sells for $196 per unit. Required: 1. Calculate the cost pool activity rate for each of the three activities. Assembly Rate Inspection Rate Packaging Rate 2. How much manufacturing overhead would be allocated to Product X14 in total?
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