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E4-6 (Algo) Calculating Activity Rates, Assigning Costs [LO 4-3, 4-4] Fellar Corp. has identified the following information: Activity cost pools Materials handling$48,400 Machine maintenance32,370 Cost
E4-6 (Algo) Calculating Activity Rates, Assigning Costs [LO 4-3, 4-4]
Fellar Corp. has identified the following information:
Activity cost pools
Materials handling$48,400
Machine maintenance32,370
Cost drivers
Number of material moves880
Number of machine hours83,000
Required:
1. Calculate the activity rate for each cost pool.
2. Determine the amount of overhead assigned to Fellars products if they have the following activity demands:
Product AProduct B
Number of material moves560320
Number of machine hours41,90041,100
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