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Drill Master Corp. produces two products: saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are
Drill Master Corp. produces two products: saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as follows:
Activity
Budgeted Costs
Activity Base
Stamping
$
Machine hours
Assembly
Labor hours
Setup
Number of setups
Activity Base
Saws
Drills
Total
Machine hours
Labor hours
Number of setups
Units produced
a Determine the activity rate for each activity.
b Determine the factory overhead to be allocated to EACH unit of product. Round to the nearest cent. Show work!!
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