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Jamesway Corporation makes two types of replacement fittings for heavy construction equipment-screws and bolts. Data regarding the two products follow: Check my work Direct
Jamesway Corporation makes two types of replacement fittings for heavy construction equipment-screws and bolts. Data regarding the two products follow: Check my work 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 $8.40 in direct materials per unit, and bolts require $6.40. b. The direct labour wage rate is $25 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 Activity Rate Machine setups Special processing General factory per setup per MH per DLH Estimated Overhead Cost Screws $ 22,800 $192,000 $378,000 Activity Bolts Total 80 4,000 7,000 40 0 120 4,000 14,000 21,000
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