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Question 5 A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Cost Driver Number of Batches
Question 5 A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Cost Driver Number of Batches Made Number of Orders Filled Number of Units Made Activity Extrusion Costs Handling Costs Packaging Costs Expected Costs $83,600 $8,800 $40,500 The company produces two products, A and B, as follows: Product A 750,000 units Description Production Volume 200 batches 75 orders Batches Made Orders filled What is the activity rates for Extrusion Costs? Extrusion: $418 per batch; handling: $117.33 per order, packaging: $0.054 per unit. Extrusion: $88 per order, handling: $32 per unit: packaging: $0.03 per batch. Extrusion: $118.13 per batch: handling: $44 per order; packaging: $0.0675 per unit. Extrusion: $304 per batch; handling: $32 per unit: packaging: $0.03 per unit. Extrusion: $88 per batch; handling: $32 per order; packaging: $0.03 per unit. Extrusion activity rate: $83,600/(200 + 750) batches - $88 per batch Handling costs rate: $8,800/(75+200) orders $32 per order Packaging activity rate: $40,500/(750,000+ 600,000) units - $0.03 per unit Product B 600,000 units 750 batches 200 orders 0/3
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