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Total Factory Overhead for Big Company is budgeted at $800,000 for the year; milling $250,000; assembly $125,000; setup, $240,000; and handling, $185,000. Big manufactures
Total Factory Overhead for Big Company is budgeted at $800,000 for the year; milling $250,000; assembly $125,000; setup, $240,000; and handling, $185,000. Big manufactures two products: Product A and Product B. The activity-base usage quantities for each product by each activity are estimated as follows: Milling: Product A 5,000 DLHR; Product B 20,000 DLHR Assembly: Product A 10,000 DLHR; Product B 5,000 DLHR Setups: Product A 50 setups; Product B 120 setups Handling: Product A 100 moves; Product B 80 moves Production for the year is budgeted for Product A is 5,000 and Product B is 6,000. REQUIRED: Determine the: 1. 2. Activity rate for each activity. (Round to the nearest cent) Activity-based factory overhead in total and per unit for each product. (Round to the nearest cent)
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