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EX 18-12 Activity cost pools, activity rates, and product costs using Obj. 4 activity-based costing Caldwell Home Appliances Inc. is estimating the activity cost associated
EX 18-12 Activity cost pools, activity rates, and product costs using Obj. 4 activity-based costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows Activity Pool Activity Cost Activity Base Procurement $ 12,600 Number of purchase orders Scheduling 90,000 Number of production orders Materials handling 11,000 Number of moves Product development 50.000 Number of engineering changes Total cost $163,600 (Continued) Chapter 18 Activity Baved Costno The estimated activity-base usage and unit information for two product lines was determined as follows: Number of Change Orders Engineering Number of Purchase Orders 400 300 700 Number of Production Orders 800 400 1.200 Ovens Refrigerators Totals Number of Moves 300 200 Soo 80 120 200 Units 1.000 500 1.500 Determine the activity rate for each activity cost pool. 1). Determine the activity-based cost per unit of each product
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