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Compute the activity cost rates for materials handling, assembly, and design based on these data: Materials Cloth 26,000 Fasteners 4,000 Purchased parts 40,000 Materials handling

Compute the activity cost rates for materials handling, assembly, and design based on these data: Materials Cloth 26,000 Fasteners 4,000 Purchased parts 40,000 Materials handling Labor 8,000 Equipment depreciation 5,000 Electrical power 2,000 Maintenance 6,000 Assembly Machine operations 5,000 Design Labor 5,000 Electrical power 1,000 Overhead 8,000 Output totaled 40,000 units. Each unit requires three machine hours of effort. Materials handling costs are allocated to the products based on direct materials cost. Design costs are allocated based on units produced. Assembly costs are allocated based on 500 machine operator hours. (Hint: activity cost rate = total activity costs/total allocation base. Examples of an allocation base include total dollars of materials, total machine operator hours, or total units of output).

Materials handling cost rate ___________________ % per dollar of materials
Assembly cost rate _____________________ per machine operator hour
Design cost rate (round to two decimal places) ____________ per unit

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