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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 $50,740 Machine maintenance
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 | $50,740 |
Machine maintenance | 28,980 |
Cost drivers | |
Number of material moves | 860 |
Number of machine hours | 69,000 |
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 A | Product B | ||
Number of material moves | 510 | 350 | |
Number of machine hours | 42,800 | 26,200 | |
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