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Instructions Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four
Instructions Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows: 1 2 Procurement 3 Scheduling 4 Materials handling 5 Product development 6 Total cost Activity Activity Pool Cost Activity Base $82,012.00 Number of purchase orders 5,112.00 Number of production orders 14,212.00 Number of moves 5,670.00 Number of engineering changes $107,006.00 The estimated activity-base usage and unit information for two product lines was determined as follows: Number of Purchase Orders Production Orders Moves Engineering Change Orders Units Ovens 465 141 210 58 777 Refrigerators 242 72 208 32 541 Totals 707 213 418 90 00 1,318 Required: Complete the Activity Tables for ovens and refrigerators. a. Determine the activity rate for each activity cost pool. Enter these rates in the Activity Rate columns. b. Use the activity rates in (a) to determine the activity-based cost per unit of each product. Round the per-unit rates to the nearest cent. Activity Table Ovens Complete the Activity Table for ovens. a. Determine the activity rate for ovens activity. Enter these rates in the Activity Rate column. b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with ovens product. Round the per-unit rates to the nearest cent. Activity- Activity Base Usage Procurement Scheduling $ $ purch. ords. Materials handling $ prod. ords. Product development $ Total Unit volume Activity cost per unit moves ECOS Ovens Activity Rate Activity Cost $ $ $ Activity Table - Refrigerators Complete the Activity Table for refrigerators. a. Determine the activity rate for refrigerators activity. Enter these rates in the Activity Rate column. b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with refrigerators product. Round the per-unit rates to the nearest cent. Activity- Activity Base Usage $ Procurement Scheduling Materials handling Product development Total Unit volume Activity cost per unit $ $ $ Refrigerators Activity Activity Rate Cost
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