Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows:

Toaster Oven
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Assembly activity	selector 1 dlh or setups		selector 2 /dlh or /setup
Test and pack activity	selector 3 dlh or setups		selector 4 /dlh or /setup
Setup activity	selector 5 dlh or setups		selector 6 /dlh or /setup
Total
Units
Factory overhead cost per unit

1	Assembly Department	$233,471.00
2	Test and Pack Department	220,641.00
3	Total	$454,112.00

The direct labor information for the production of 6,300 units of each product is as follows:

	Department
	Assembly	Test and Pack
Blender	755 dlh	2,665 dlh
Toaster oven	2,255	865
Total	3,010 dlh	3,530 dlh

Four Finger Appliance used direct labor hours (dlh) to allocate production department factory overhead to products.

The management of Four Finger Appliance Company has asked you to use activity-based costing to allocate factory overhead costs to the two products. You have determined that $82,971 of factory overhead from each of the production departments can be associated with setup

An overhead activity that consists of changing tooling in machines in preparation for making a new product.

activity ($165,942 in total). Company records indicate that blenders required 140 setups, while the toaster ovens required only 49 setups. Each product has a production volume of 6,300 units.

Required:

Complete the Activity Tables for blenders and toaster ovens.

A.

Determine the three activity rates

The estimated activity cost divided by estimated activity-base usage.

(assembly, test and pack, and setup).*

B.

Determine the total factory overhead and factory overhead per unit allocated to each product using the activity rates in (A).*

* If required, round all per-unit answers to the nearest cent.

Complete the Activity Table for blenders.

A.

Determine the three activity rates

The estimated activity cost divided by estimated activity-base usage.

(assembly, test and pack, and setup).*

B.

Determine the total factory overhead and factory overhead per unit allocated to each product using the activity rates in (A).*

* If required, round all per-unit answers to the nearest cent.

	Blender
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Assembly activity	selector 1 dlh setups		selector 2 /dlh /setup
Test and pack activity	selector 3 dlh setups		selector 4 /dlh /setup
Setup activity	selector 5 dlh setups		selector 6 /dlh /setup
Total
Units
Factory overhead cost per unit