Question
Estrella Company manufactures two products, Regulus and Polaris. The two products have the following cost and production data: RegulusPolaris Factory Overhead (FO) cost applied$1,687,250$2,064,400 Machine
Estrella Company manufactures two products, Regulus and Polaris. The two products have the following cost and production data:
RegulusPolaris
Factory Overhead (FO) cost applied$1,687,250$2,064,400
Machine hours 124,982152,919
Number of parts 85,000104,000
a) Calculate Estrellas Activity FO rate if its activity base is machine hours (round to nearest $0.00).
b) Calculate Estrellas Activity FO rate if its activity base is number of parts (round to nearest $0.00).
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Cost Management Strategies For Business Decisions
Authors: Ronald Hilton, Michael Maher, Frank Selto
3rd Edition
0072830085, 978-0072830088
