Teldar Manufacturing Company is a diversified manufacturer that manufactures three products (M5, Z4, and I8) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows:

1	Activity	Activity Cost Pool
2	Production	$251,598.00
3	Setup	92,035.00
4	Material handling	10,736.00
5	Inspection	49,833.00
6	Product engineering	136,230.00
7	Total	$540,432.00

The activity bases identified for each activity are as follows:

Activity	Activity Base
Production	Machine hours
Setup	Number of setups
Material handling	Number of parts
Inspection	Number of inspection hours
Product engineering	Number of engineering hours

The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows:

	Machine	Number of	Number of	Number of	Number of
	Hours	Setups	Parts	Inspection Hours	Engineering Hours	Units
M5	970	63	84	489	123	1,354
Z4	802	123	138	272	170	1,044
I8	435	209	266	256	185	452
Total	2,207	395	488	1,017	478	2,850

Each product requires 0.72 machine hour per unit.

Required:

Complete the Activity Tables for M5, Z4 and I8.

1. Determine the activity rate for each activity.*

2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with all three products.*

* If required, round all per-unit amounts to the nearest cent.

Required:

Complete the Activity Table for M5.

	1. Determine the activity rate for each activity.*
	2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with all three products.*
	* If required, round all per-unit amounts to the nearest cent.

	M5
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Production
Setup
Material handling
Inspection
Engineering
Total activity cost
Number of units
Activity cost per unit

Required:

Complete the Activity Table for Z4.

	1. Determine the activity rate for each activity.*
	2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with all three products.*
	* If required, round all per-unit amounts to the nearest cent.

	Z4
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Production
Setup
Material handling
Inspection
Engineering
Total activity cost
Number of units
Activity cost per unit

Required:

Complete the Activity Table for I8.

	1. Determine the activity rate for each activity.*
	2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with all three products.*
	* If required, round all per-unit amounts to the nearest cent.

	I8
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Production
Setup
Material handling
Inspection
Engineering
Total activity cost
Number of units
Activity cost per unit