Ratios, Activity Rates,

rcise 5-49 Product-Costing Accuracy, Consumption Ratios, Activity Rates, rristar Manufacturing produces two types of battery-operated toy soldiers: infantry iorces. soldiers are produced by using one continuous process. Four activities have dentified: machining, setups, receiving, and packing. Resource drivers have been used iign costs to each activity. The overhead activities, their COSts, and the other related data :ollows: Infantry Special forces Receiving Orders Packing Machine Hours Setups 20,000 20,000 $80,000 300 100 $24,000 900 100 $18,000 1600 800 $30,om 1. Calculate the total overhead assigned to each product by using only machine hours to calculate a plantwide rate. 2. Calculate consumption ratios for each activity. (Round to two decimal places.) 3. Calculate a rate for each activity by using the associated driver. (Round to two dec places.) 4. Assign the overhead costs to each product by using the activity rates computed in Requirement 3. 5. CONCEPTUAL CONNECTION Comment on the difference between the assignment Requirement I and the activity-based assignment.