Questions BE4-5,BE4-7 , BE4-8 and BE4-9

Brief E Mason Company manufactures four products single production facility. The Identify c company uses activity-based The following activities have been identified through Lo 4), A the company's analysis: (a) inventory control, machine setups, (c) employee quality inspections, (e) material ordering, (f drilling operations, and g) building maintenance. For each activity, name a cost driver that might be used to assign overhead costs to products BE4-5 Mordica Company identifies three activities in its manufacturing process: machine Comp setups, machining, and inspections. Estimated annual overhead cost for each activity is overh $150,000, $325,000, and $87,500, respectively. The cost driver for each activity and the (LO 4 expected annual usage are: number of setups 2,500, machine hours 25,000, and of inspections 1,750. Compute the overhead rate for each activity. BE4-6 Weisman, Inc. uses activity-based costing as the basis for information to set prices Com for its six lines of seasonal coats. Compute the activity-based overhead rates using the fol ove lowing budgeted data for each of the activity cost pools. Expected Use of Estimated Overhead cost Drivers per Activity Activity Cost Pools 10,000 designer hours Designing 450,000 Sizing and cutting 4,000,000 Stitching and trimming 1,440,000 Wrapping and packing 336,000 160,000 machine hours 80,000 labor hours 32,000 finished units of computer chips, employs activity-based cost