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Klamath Corp. produces two products: saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as
Klamath Corp. produces two products: saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as follows: Activity Base Budgeted Costs $200,000 Machine hours Activity Stamping Assembly Setup Labor hours 400,000 30,000 Number of setups Activity Base Saws Drills Total Machine hours 4,000 6,000 10,000 20,000 Labor hours 7,000 13,000 Number of setups 3 12 15 Units produced 500 600 a. Determine the activity rate for each activity. Stamping per machine hour Assembly per labor hour Setup per setup b. Determine the factory overhead to be allocated to each unit of product. Round your answers to two decimal places, if necessary. Saws $ per unit Drills $ per unit
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