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Taylor Corporation produces two models of their leather brief cases: deluxe and standard. The four activities and four drivers are as follows: Hours Activities: Cost
Taylor Corporation produces two models of their leather brief cases: deluxe and standard. The four activities and four drivers are as follows: Hours Activities: Cost Driver Deluxe Standard Total Cutting $96,000 2,200 1,300 3,500 Cutting hours Assembly hours Assembling $42,000 1,150 980 2,130 Inspecting $15,000 Inspection hours 800 500 1,300 Reworking $8,000 Rework hours 20 35 55 Required: A. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Activity driver Deluxe Standard Cutting hours Assembly hours Inspection hours Rework hours B. Calculate the activity rates that would be used to assign costs to each product. Round your answers to two decimal places. Activity Cost Total hours Activity Rate Cutting hours $ Assembly hours Inspection hours Rework hours C. Calculate the unit costs assuming that 500 deluxe models were produced and 700 standard models were produced. Round consumption ratios and unit costs to the nearest cent. Cutting Assembling Inspecting Reworking Total Cost Unit cost Deluxe Standard
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