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Henry Machinery Corp. manufactures two models of medical devices: Model 101 and Model 102. Below is the actual current production data for the company: Model
Henry Machinery Corp. manufactures two models of medical devices: Model 101 and Model 102. Below is the actual current production data for the company: Model 101 Model 102 Direct material units 97,000 113.000 Direct labor hours 30,000 40,000 Machine hours 28,000 13,000 Number of setups 300 500 Number of devices produced 16,000 8,000 The company has established the following activity centers, cost drivers, and estimated costs for the year Cost Pool Cost driver Cost Volume of cost driver Equipment maintenance 39,000 $585,000 of machine hours 900 Production setup # of setups $125,000 $600,000 # of units produced 24,000 Transportation costs
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