Green Mountain Manufacturing has recently installed an activity-based relational data base. Using the information contained in the activity relational table, the following pool rates were computed:

$400	per purchase order
$24	per machine hour, Process R
$30	per machine hour, Process S
$80	per engineering hour
$4	per packing order
$200	per square foot

Two products are produced by Green Mountain: Normal and Excellent. Each product has an area in the plant that is dedicated to its production. The plant has two manufacturing processes, the Normal process (Process R) and the Excellent process (Process S). Other processes include engineering, product handling, and procurement. The product relational table for Green Mountain is as follows:

Normal Product:
Activity Driver #	Name	Activity Usage
1	Units	800,000
2	Purchase orders	1,000
3	Machine hours	320,000
4	Engineering hours	5,000
5	Packing orders	400,000
6	Square footage	6,000

Excellent Product:
Activity Driver #	Name	Activity Usage
1	Units	100,000
2	Purchase orders	500
3	Machine hours	40,000
4	Engineering hours	6,000
5	Packing orders	100,000
6	Square footage	4,000

Required:

a.

Identify two different concatenated keys. What is the purpose of concatenated keys?

b.

Using the pool rates and the information from the product relational table, calculate the unit overhead cost for each product.

c.

Does the product relational table indicate how many activities are in each pool? Is this necessary for product costing? Explain.

4-27-11.Inventive Manufacturing Company has the following activities: creating bills of materials (BOMs), studying manufacturing capabilities, improving manufacturing processes, training employees, and designing tooling. The general ledger accounts reveal the following expenditures for manufacturing engineering:

Salaries	$500,000
Equipment	100,000
Supplies	30,000
Total	$630,000

The equipment is used for two activities: improving processes and designing tooling. Forty percent of the equipment's time is used for improving processes, and 60% is used for designing tools. The salaries are for five engineers, one who earns $160,000 and four who earn $85,000 each. The $160,000 engineer spends 30% of his time training employees in new processes and 70% of his time on improving processes. One engineer spends 100% of her time on designing tooling and another engineer spends 100% of his time on improving processes. The remaining two engineers spend equal time on all activities. Supplies are consumed in the following proportions:

Creating BOMs	15%
Studying capabilities	5%
Improving processes	30%
Training employees	30%
Designing tooling	20%

Required: Using the resource drivers and direct tracing, calculate the cost of each manufacturing engineering activity. What are the resource drivers?