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Ques Accoun After attending a seminar on measuring customer profitability, Mason Ford decided to examine Olson Optics' customers to determine if the company truly knew

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Ques Accoun After attending a seminar on measuring customer profitability, Mason Ford decided to examine Olson Optics' customers to determine if the company truly knew how profitable its customers were Olson Optics already uses an activity-based costing system to determine the product cost of its two products: RF30 and LF45. Each RF30 sells for $ 17 and requires $ 7.20 in direct materials and $5.00 in direct labor. Each LF45 sells for $45 and requires $ 16.20 in direct materials and $13.60 in direct labor. The following table provides cost and activity information for manufacturing overhead for the two products View Account Questi Account Number of Activities Manufacturing Overhead Costs Activity Cost Pool Cost Driver RF30 LF45 Total Questi Accounti Packing Cartons $ 187,500 375.000 250.000 625.000 Setup Setup hours 412.500 10,000 Questic Accounting 27,500 37.500 Assembly Spot welds 682.500 130,000 260,000 390,000 Finishing Machine hours 370,000 20,000 80,000 100,000 Total manufacturing overhead costs $1.652.500 Units produced 524,000 225,700 Based on what Ford learned at the seminar, he has gathered the following information about customer support activities. Cost Driver Selling Costs Driver Volume Activity Cost Pool Order entry Customer support Orders $ 240,000 40,000 Support hours 170,000 5,000 Sales calls Sales calls 240,000 2.000 Express shipping Shipments 154,000 7.000 Total selling costs $ 804,000 Ford wants to apply his new profitability analysis techniques to Infrared Technologies, a company he believes is representative of Olson's overage customer. Information about Infrared's account activity is as follows. Olson's average customer. Information about Infrared's account activity is as follows. 10,000 units 3,000 units 120 RF30 purchases LF45 purchases Orders placed Customer support Sales calls Express shipments 340 hours 22 90 Your answer is correct Calculate the activity based product cost for RF30 and LF45. (Round answers to 2 decimal places, eg. 15.25.) RF30 LF45 Total unit cost $ 13.20 34.80 Calculate the cost pool rates for Olson's customer service activities, Cost Pool Activity Rate Order entry per order Customer support $ per support hour Sales calls $ per sales call Express shipping $ per shipment

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