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Pecan Incorporated, produces water valves. Overhead costs have been identified as follows: Total Activity 185 19,000 68 Activity Pool Quality control Machine maintenance Setups Cost
Pecan Incorporated, produces water valves. Overhead costs have been identified as follows: Total Activity 185 19,000 68 Activity Pool Quality control Machine maintenance Setups Cost of Pool $ 62,538 $ 123, 500 $ 103, 500 Units produced Number of inspections Machine hours Production runs Pecan makes three models of valves with the following activity demands: Economy Cost Driver Number of inspections Number of machine hours Number of production runs 29,900 5 4,500 Standard 12,088 Premium 7,000 2,500 Required: a. Calculate the activity rate for each activity. b. Determine the amount of indirect costs assigned to each of the products.
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