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The total factory overhead for Mustang Seats Inc.. is budgeted at $770,000 for the year, divided among four activities: material handling. $160,000; setups $90,000; fabrication,
The total factory overhead for Mustang Seats Inc.. is budgeted at $770,000 for the year, divided among four activities: material handling. $160,000; setups $90,000; fabrication, $400,000; and assembly, $120,000. Mustang manufactures two designer seat products: a wingback and a disk. The activity-base usage quantities for each product by each activity are estimated as follows: Materials Handling: Wingback 60 moves; Disk 440 moves Setups: Wingback 35 setups: Disk 240 setups Fabrication: Wingback 6,000 DLHR: Disk 18,000 DLHR Assembly: Wingback 12,000 DLHR; 8,000 DLHR Production for the year is budgeted for 5,5,00 wingback and 4,500 disks. REQUIRED: Determine the: 1. Activity rate for each activity. (Round to the nearest cent) 2. Activity-based factory overhead in total and per unit for each product. (Round to the nearest cent)
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