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Points: 0.24 of 1 Save Lang Boards manufactures two models of surfboards, Basic and Competition, in a facility in Southem Callona. In tabrication, machine
Points: 0.24 of 1 Save Lang Boards manufactures two models of surfboards, Basic and Competition, in a facility in Southem Callona. In tabrication, machine setup costs are chven by the number of setups, machine maintenance and ulity costs increase with the number of machine hours, and indirect labor costs increase with direct labor hours Facility rent and machine depreciation are fixed and are the basis of manufacturing capacity Fixed costs are allocated equally to each unt produced, regardless of model Currently Lang uses 80% of its manufacturing capacity. The cost of unused capacity is not assigned to products, but is expensed as a separate line item For 2020 Lang has budgeted the folowing (Click the icon to view the budgeted information) (Click the icon to view other information) Read the eurements Requirement 1. Calculate the cost-allocation rate for each of the activity-cost pools for variable and fead overhead costs. Select the formula you will uso, then citate the cost dover same. Round the cost diver rates to th cent, SX XX "Machine maint & util" "Machine maintenance and utility costs When calculating the cost driver sades for facility rent and depreciation, use a numerator that accounts for the fact that Lang im only 80% of m manufacturing capacity) Cost Sotal quantity of cost driver Machine setups 1 55,000 1,100 5000 per sep Machine maint & util 1 595,000 05.000 7.00 per machine-hour Indirect labor costs 420,000 56,000 7.50 per direct labor Facility rent 292500- 13000 22.5 per unit produced
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