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Pecan Inc. produces water valves. Overhead costs have been identified as follows: Activity Pool Quality control Machine maintenance Setups Cost $ 58,460 $102,600 $ 87,000
Pecan Inc. produces water valves. Overhead costs have been identified as follows: Activity Pool Quality control Machine maintenance Setups Cost $ 58,460 $102,600 $ 87,000 Activity Driver Number of inspections Number of machine hours Number of production runs Activity 185 19,000 60 Pecan makes 3 models of valves with the following details: Units produced Number of inspections Machine hours Production runs Economy Standard Premium 20,000 40,000 7,000 5 40 140 4,500 12,000 2,500 5 20 35 Required: a. Calculate the activity rate for each activity. (Round your answers to 2 decimal places.) Cost Activity Rate Quality Control Machine maintenance Setups b. Determine the amount of indirect costs assigned to each of the products. (Do not round your intermediate calculations.) Cost Models Economy Standard Premium
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