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In order to compare WoolCos current traditional method with activity-based costing, you interview the production staff and compile the following information, which relates only to

In order to compare WoolCos current traditional method with activity-based costing, you interview the production staff and compile the following information, which relates only to the costs for raw wool and wool yarn. WoolCo wishes to consider costing only for these two products at this time, since they are more established and have more data to evaluate.

Type of Cost

Activity Base

Total Cost

Sorting Hours of sorting $25,600
Cleaning Units of cleaning machine power 39,600
Combing Hours of combing machine use 1,200

Raw Wool

Wool Yarn

Hours of sorting required 1,500 3,500
Units of cleaning machine power required 1,800 4,200
Hours of combing machine use required 70 30

In the following table, compute and enter the activity rate for each of the three activities. If required, round your answers to the nearest cent.

Activity

Activity Rate

Sorting per sorting hour
Cleaning per unit of cleaning machine power
Combing per hour of combing machine use

Points:

0 / 3

In the following table, allocate the costs of sorting, cleaning, and combing based on the rates of activity consumed by each products process. When required, round your answers to the nearest dollar.

Raw Wool Wool Yarn
Sorting cost $ $
Cleaning cost
Combing cost
Total cost $ $

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