Question
Chipman Inc. produces water pumps. Overhead costs have been identified as follows: Activity Pool Cost Material handling $ 71,280.00 Material maintenance $ 72,000.00 Setups $
Chipman Inc. produces water pumps. Overhead costs have been identified as follows: Activity Pool Cost Material handling $ 71,280.00 Material maintenance $ 72,000.00 Setups $ 76,067.00 Activity Driver Activity Number of moves 440 Number of machine hours 36,000 Number of production runs 61 Chipman makes 3 models of pumps with the following details: Economy Standard Premium Units produced 10,090 20,400 3,555 Number of moves 146 128 166 Machine hours 9,500 20,600 5,900 Production runs 15 15 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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