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Facey Manufacturing, a manufacturer of a variety of products, uses an activity-based costing system. Information from its system for the year for all products
Facey Manufacturing, a manufacturer of a variety of products, uses an activity-based costing system. Information from its system for the year for all products follows: Total cost Activity Cost Pool Assembly 40,000 Inspection 30,000 Packaging $35,000 7,000 orders Facey Manufacturing makes 50 of its products A34 a year, which requires a total of 80 machine hours, 11 inspection hours, and 25 orders. Product A34 requires $20 in direct materials per unit and $16 in direct labour per unit. $380,000 $450,000 Total Activity Machine -hours Inspection-hours Activity rate Required: A. Calculate the cost pool activity rate for each of the three activities (3 Marks). B. How much manufacturing overhead would be allocated to Product A34 in total? (3 Marks)
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