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Show me the steps to solve Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection.
Show me the steps to solve Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below.
Basic Advanced Total
Units produced
Prime costs $ $ $
Machine hours
Engineering hours
Receiving orders
Inspection hours
Overhead costs:
Machining $
Engineering
Receiving
Inspecting products
Required:
Calculate the four activity rates.
Machining rate $fill in the blank
per machine hour
Engineering rate $fill in the blank
per hour
Receiving rate $fill in the blank
per order
Inspecting rate $fill in the blank
per hour
Calculate the unit costs using activity rates. Round your answers to the nearest cent.
Unit cost
Basic $fill in the blank
per unit
Advanced $fill in the blank
per unit
Calculate the overhead cost per unit. Round your answers to the nearest cent.
Overhead Cost
Basic $fill in the blank
per unit
Advanced $fill in the blank
per unit
If consumption ratios instead of activity rates were used to assign costs instead of activity rates, show the cost assignment for the inspection activity.
Cost assignment
Basic $fill in the blank
Advanced $fill in the blank
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