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Kitchen Supply inc. (KSIX manufactures three types flatware institutional standard, and silver. il applies all indirect costs according to a predetermined rate based on direct

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Kitchen Supply inc. (KSIX manufactures three types flatware institutional standard, and silver. il applies all indirect costs according to a predetermined rate based on direct labor hours. Aconsultantrecently suggested that the company switch to an activity based ccstig system and prepared the following cost estimates for ear 2 for the recommended cost drivers. Recommended Estimated Cost Cost Driver Driver Activity Fro easing order Number or 200 orders Setting up production Number of pr 20400 terials used 30.000 Hertnming quality Number of 60.00 600.00 In al diliun enl esti aled 7.100 ditct labat-haurs for year 2 Assume that lhe falowing Drest driver v lumes o curred in January year 2 2000 S16,000 Direct Direct labor hours of productio Pourde of male 7,0 of inapections 2.000 10.000 Adual lab ttsls where $15 per bour Required Compute a predetermined averhead rate cr year 2 tor cach cost drver using the e mated costs and estimated cost driver units prepared by the Round you nswers to 2 d mal places. Handling mat Arials AAr pound Using machinas AAr machin hour Parforming quality Parking

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