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I need help figuring out how to do the Activity Rates. Thank you. Product Data Model B Model A 50,000 500,000 Units produced & sold
I need help figuring out how to do the Activity Rates. Thank you.
Product Data Model B Model A 50,000 500,000 Units produced & sold per year Sales Revenue 1750,000.00 17 500,000.00 Prime Cost 125.000.00 1,250,000.00 125.000 475,000 of Direct Labor Hours 50,000 450,000 of Machine hours of set up 25 100 200 1.800 of Inspection runs of packing orders 12,000 68,000 Manufacturing Overhead Costs: 150,000.00 Machining 280,000.00 Setup costs 180,000.00 Inspection costs 260,000.00 Packing Costs Total 870,000.00 Simple or Traditional Cost Allocation Model A Model B S Plant-wide MOH Rate 1.45 1.45 181,250.00 688,750.00 Allocated MoH Direct Materials & Direct Labor 125,000.00 1,250,000.00 Allocated MOH 181.250.00 LS 688,750.00 Total Product costs 6.13 3.88 Product Cost (CGS) per unit 35.00 Selling Price per unit 35.00 6.13 3.88 CGS per unit s 28:88 31.12 Gross Profit per Unit Activity-Based Costing Model A Model B Activity Rates Machining Setup costs Inspection costs Packing costs Allocated MOH Direct Materials & Direct Labor 125.000,00 s 1.250.000,00
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