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ID: A ID: A 9. Nifty Company porduces three modesl of aluminum skateboards. The models have minor differences, but their processing operations and production costs
ID: A ID: A 9. Nifty Company porduces three modesl of aluminum skateboards. The models have minor differences, but their processing operations and production costs are identical. During June the following costs were incurred Direct materials: Aluminum frame Bolts 162,524 3,876 Purchased parts: Wheels Decals 74,934 5,066 Materials handling (assigned based on direct materials costs): Labor 17,068 4,438 914 876 Maintenance Depreciation Assembly line (assigned based on labor hours) Labor 46,080 Setup (assigned based on number of setups): 6,385 762 3,953 Labor Supplies Product testing (assigned based on machine hours): Labor Supplies 2,765 435 Building occupancy (assigned based on machine hours): 5,767 2,452 3,781 Insurance Depreciation Repairs & maintenance For June output totaled 32,000 skateboards. Each board required 1.5 machine hours of effort. During June Nifty's assembly line worked 2,304 hours, performed 370 setups, and 64,000 product tests, and completed an order for 1,000 skateboards. Required: Compute the following activity cost rates: a) materials handling cost rate, 12
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