Question
Johnson Company makes 2 different grille models: basic and deluxe. All grilles go through the following departments and total costs for the departments are listed
Johnson Company makes 2 different grille models: basic and deluxe. All grilles go through the following departments and total costs for the departments are listed below:
Design Department $25,000
Assembly Department $100,000
Rework Department $20,000
Testing Department $45,000
Total activity hours (activity driver) for each grille model and department are listed below:
| Basic | Deluxe | |
| Design Hours | 3,000 | 1,000 |
| Assembly Hours | 8,000 | 2,000 |
| Rework Hours | 4,000 | 6,000 |
| Testing Hours | 4,500 | 4,500 |
What is the activity rate for the Design Department?
| A. | $25,000 | |
| B. | $4,000 | |
| C. | $6.25 | |
| D. | $5 |
What is the activity rate for the Assembly Department?
| A. | $100,000 | |
| B. | $10 | |
| C. | $5 | |
| D. | $10,000 |
What is the activity rate for the Rework Department?
| A. | $2 | |
| B. | $20,000 | |
| C. | $10,000 | |
| D. | $4 |
What is the activity rate for the Testing Department?
| A. | $5 | |
| B. | $45,000 | |
| C. | $9 | |
| D. | $9,000 |
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Management Accounting Information For Decision Making
Authors: Anthony A. Atkinson
7th Edition
1618533517, 9781618533517
