Question
Chipman Inc. produces water pumps. Overhead costs have been identified as follows: Activity Pool Cost Material handling $ 77,715.00 Material maintenance $ 110,400.00 Setups $
Chipman Inc. produces water pumps. Overhead costs have been identified as follows: Activity Pool Cost Material handling $ 77,715.00 Material maintenance $ 110,400.00 Setups $ 75,945.00 Activity Driver Activity Number of moves 495 Number of machine hours 36,800 Number of production runs 61 Chipman makes 3 models of pumps with the following details: Economy Standard Premium Units produced 10,170 21,600 3,520 Number of moves 199 130 166 Machine hours 9,700 20,100 7,000 Production runs 14 16 31 Required: a. Calculate the activity rate for each activity. (Round your answers to 2 decimal places.) 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.)
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