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thanks Tristar Manufacturing produces two types of battery operated toy soldiers: Infantry and Special Forces. Four activities have been identified: machining, setups, receiving, and packing.
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Tristar Manufacturing produces two types of battery operated toy soldiers: Infantry and Special Forces. Four activities have been identified: machining, setups, receiving, and packing. Costs have been assigned to each activity. The overhead activities, their costs and the other related data are as follows: Machine Hours $ 80,000S Costs Infantry Special Forces Receiving Setups Packing Orders Orders 24,000 18,000 $ 30,000 300 900 1,600 100 100 800 20,000 20,000 a) Calculate the total overhead assigned to each product by using only machine hours to calculate a plant-wide rate (use estimated activity given in tables). 80,000 Machining $ Setups Receiving Packing Total Machine Hours Cost per Machine Hour Infantry Special Forces Cost per machine hour x 20,000 machine hours b) Calculate the rate for each activity by using the associated driver. $80,000/ (20,000+20,000) Machining $ Setups Receiving Packing 2.00 per machine hour per setup per receiving order per packing order c) Assign the overhead costs to each product by using the activity rates computed in b (use the estimated activities given in table). Infantry Special Forces Machining 40,000 20,000 x 52.00 Setups Receiving Packing TOTAL Step by Step Solution
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