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Jamesway Corporation makes two types of replacement fittings for heavy construction equipment-screw the two products follow: Direct Labour- Hours per Unit Annual Production Screws Bolts
Jamesway Corporation makes two types of replacement fittings for heavy construction equipment-screw the two products follow: Direct Labour- Hours per Unit Annual Production Screws Bolts 0.20 0.10 40,000 units 60,000 units Additional information about the company follows: a. Screws require $8.10 in direct materials per unit, and bolts require $6.10. b. The direct labour wage rate is $30 per hour. c. Screws are more complex to manufacture than bolts, and they require special equipment. d. The ABC system has the following activity cost pools: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labour-hours Required. 1. Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Activity Rate per setup Special processing Der MH Estimated Overhead Cost $ 19,200 $168,000 $252,000 Screws Activity Bolts Total 80 40 120 4,000 7,000 0 14,000 4,000 21,000 < Prev 15 of 35 Next > W
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