Question
Q5 Elios Company produces two products, saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are
Q5 Elios Company 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:
Stamping Budgeted Costs=$460,000 Activity Base=Machine Hours
Assembly Budgeted Costs=$648,000 Activity Base=Labor Hours
Setup Budgeted Costs=$160,000 Activity Base=Number of Setups
Activity Base: Saws Drills Total
Machine Hours 64,000 28,000 92,000
Labor Hours 16,000 92,000 108,000
Setups 20,000 60,000 80,000
Units Produced 16,000 32,000
(Each one is worth 5 points 25 points total)
What is the application rate for Stamping? _____________________________________
What is the application rate for Assembly? _____________________________________
What is the application rate for each Setup? ____________________________________
What is the overhead cost per unit for the Saws? $______________________________
What is the overhead cost per unit for the Drills? $______________________________
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