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eBook Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining engineering, receiving, and inspection Information on
eBook Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining engineering, receiving, and inspection Information on these activities and their drivers is given below, Basic Advanced Total Units produced 140,000 420,000 Prime costs $10.360,000 $46,200,000 $56,560,000 Machine hours 140,000 700,000 840,000 Engineering hours 200 1,800 2,000 Recelving orders 200 600 800 Inspection hours 700 1.400 2,100 Overhead costs: 312,600,000 Machining Engineering 1.080.000 Receiving 240.000 Inspecting products 399,000 Required: Required: 1. Calculate the four activity rates. 15 per machine hour Machining rate Engineering rate 540 per hour Receiving rate 300 per order Inspecting rate 190 per hour 2. Calculate the unit costs using activity rates Round your answers to the nearest cent. Unit cost Basic 2,100,00 X per unit Advanced 10,500,0 X per unit I Calculate the overhead cost per unit. Round your answers to the nearest cerit Overhead Cost Basic per unit Advanced per unit 3. If consumption ratios instead of activity rates were used to assion costs instead of activity rates show the cost assignment for the inspection activity 3. If consumption ration instead of activity rates were used to assion costs instead of activity rates show the cost assignment for the inspection activity Cost assignment Basic 133,000 Advanced 265,000
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