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PROBLEM 2 15 POINTS) The Klamath Corp. produces two products, saws and drills. Three activities are used in their manufacture. These activities and their associated

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PROBLEM 2 15 POINTS) The 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 Machine hours Labor hours Number of setups Budgeted Costs Activity Stamping Assembly Setup S200,000 $400,000 S30,000 Drills 6,000 13,000 12 Total 10,000 20,000 15 Activity base Machine hours Labor hours Number of setups av 4,000 7,000 500 600 Units produced Requirements: a) Determine the activity rate for each activity. erhead cost per unit for each product

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