Question
The total factory overhead for Diva-nation is budgeted for the year at $180,000, divided into four activities: cutting, $18,000; sewing, $36,000; setup, $96,000; and inspection,
The total factory overhead for Diva-nation is budgeted for the year at $180,000, divided into four activities: cutting, $18,000; sewing, $36,000; setup, $96,000; and inspection, $30,000. Diva-nation manufactures two types of mens pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as follows: Cutting Sewing Setup Inspection Jeans 800 dlh 1,200 dlh 1,400 setups 3,000 inspections Khakis 1,200 800 1,000 2,000 2,000 dlh 2,000 dlh 2,400 setups 5,000 inspections Each product is budgeted for 20,000 units of production for the year. Required: Complete the Activity Tables for jeans and khakis. A. Determine the activity rates for each activity. Enter these rates in the Activity Rate columns.* B. Use the activity rates in (A) to determine the activity-based factory overhead per unit for each product.* * When required, round all per-unit answers to the nearest cent.
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