Question
JO Corporation produces two models of their leather brief cases: deluxe and standard. The four activities and four drivers are as follows: Hours Activities: Cost
JO Corporation produces two models of their leather brief cases: deluxe and standard. The four activities and four drivers are as follows:
Hours
Activities: Cost Driver Deluxe Standard Total
Cutting $ 96,000 Cutting hours 2,2000 1,300 3,500 Assembling 42,000 Assembly hours 1,150 980 2,130
Inspecting 15,000 Inspection hours 800 500 1300
Reworking 8,000 Rework hours 20 35 55
Required:
A. Calculate the consumption ratios for the four drivers, rounding to 2 decimal places.
B. Calculate the activity rates that would be used to assign costs to each product. Round your answer to two decimal places.
C. Calculate the unit cost assuming that 500 deluxe models were produced and 700 standard models were produced, rounded to the nearest cent.
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