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Chipman Inc. produces water pumps. Overhead costs have been identified as follows: Activity Pool Material handling Material maintenance Cost $74,025.00 $73,600.00 $78,435.00 Setups Activity Driver
Chipman Inc. produces water pumps. Overhead costs have been identified as follows: Activity Pool Material handling Material maintenance Cost $74,025.00 $73,600.00 $78,435.00 Setups Activity Driver Number of moves Activity 470 36,800 Number of machine hours Number of production runs 63 Chipman makes 3 models of pumps with the following details: Economy 10,180 174 Standard Premium Units produced Number of moves 21,900 3,550 167 129 Machine hours 9,750 24 22,000 14 5,050 25 Production runs Required: a. Calculate the activity rate for each activity. (Round your answers to 2 decimal places.) Activity Pool Activity Rate Material Handling Material Maintenance Setups b. Determine the amount of indirect costs assigned to each of the products. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) Models Cost Economy Standard Premium
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