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I'm not sure what the material handing answer is. Whitestone Company produces two subassemblies, JR-14 and RM-13, used in manufacturing trucks. The company is currently

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I'm not sure what the material handing answer is.

Whitestone Company produces two subassemblies, JR-14 and RM-13, used in manufacturing trucks. The company is currently using an absorption costing system that applies overhead based on direct-labor hours. The budget for the current year ending December 31 , 201, is as follows: "Total manufacturing overhead (applied on the basis of direct-labor hours): Mark Ward, Whitestone's president, has been reading about a product-costing method called activity-based costing. Ward is convinced that activity-based costing will cast a new light on future profits. As a result, Brian Walters, Whitestone's director of cost management, has accumulated cost pool information for this year shown on the following chart. This information is based on a product mix of 5,000 units of JR-14 and 5,000 units of RM-13. In addition, the following information is projected for the next calendar year, 202. On January 1,202, Whitestone is planning to increase the prices of JR-14 to $355 and RM- 13 to $455. Material costs are not expected to increase in 202, but direct labor will increase by 8 percent, and all manufacturing overhead costs will increase by 6 percent. Due to the nature of the manufacturing process, the company does not have any beginning or ending work-in-process inventories. Whitestone uses a just-in-time inventory system and has materials delivered to the production facility directly from the vendors. The raw-material inventory at both the beginning and the end of the month is immaterial and can be ignored for the purposes of a budgeted income statement. The company uses the first-in, first-out (FIFO) inventory method. Required: 2. Using activity-based costing, calculate the total cost in 202 for the following activity cost pools: machining, assembly, material handling, and inspection. Then, calculate the pool rate per unit of the appropriate cost driver for each of the four activities. 3. Prepare a table showing for each product line the estimated 202 cost for each of the following cost elements: direct material, direct labor, machining, assembly, material handling, and inspection. 4. Prepare a budgeted statement showing the gross margin for Whitestone Company for 20x2, using activity-based costing. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Using activity-based costing, calculate the total cost in 202 for the following activity cost pools: machining, assembly, material handling, and inspection. Then, calculate the pool rate per unit of the appropriate cost driver for each of the four activities. (Round your total cost answers to the nearest whole dollar. Round pool rates to 2 decimal places.)

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