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Tires Unlimited Corp. produces two types of tires, regular and snow tires. The company uses activity-based costing and has identified two activities and their
Tires Unlimited Corp. produces two types of tires, regular and snow tires. The company uses activity-based costing and has identified two activities and their budgeted costs: Molding Assembly RM 75,000 RM 260,000 Table 5 Molding is based on mixing hours and assembly is based on machine hours. Information regarding each product is as follows: Units produced Mixing hours Machine hours Regular tire 275 460 CONFIDEWAL Required: (a) Calculate the activity rate for molding and assembly. Round your answer to two decimal places. Calculate how much total overhead is assigned to each type of tire. [3 Marks] [CO1, PO1, C4] [3 Marks] [CO1, PO1, C4] (c) Calculate the unit overhead assigned to each type of tire. 13 Marks] [CO1, PO1, C4]
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