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The Klamath Corp. produces two products, saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are
The Klamath Corp. produces two products, saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as follows: Activity Stamping Assembly Setup Budgeted Costs $200,000 $400,000 $30,000 Activity Base Machine hours Labor hours Number of setups Saws Total Activity Base Machine hours Labor hours Number of setups Units produced Drills 6,000 13,000 12 4,000 7,000 3 500 10,000 20,000 15 600 a. Determine the activity rate for each activity Stamping per machine hour Assembly per labor hour Setup per setup b. Determine the overhead cost per unit for each product. Round your answers to two decimal places, if necessary. Saws per unit Drills per unit Previs Next
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