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Rizzo Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities have been identified: machining, setups,
Rizzo Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:
Product | Machine Hours | Setups | Receiving Orders | Packing Orders |
35mm | 10,000 | 100 | 200 | 400 |
Digital | 10,000 | 250 | 800 | 2,000 |
Costs | $60,000 | $40,000 | $8,000 | $24,000 |
Calculate an activity rate for packing based on packing orders.
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