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Question Content Area Activity Cost Pools, Activity Rates, and Product Costs using Activity-Based Costing Caldwell Home Appliances Inc. is estimating the activity cost associated with
Question Content Area Activity Cost Pools, Activity Rates, and Product Costs using Activity-Based Costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The Indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base Information are provided as follows: Activity Activity Pool Cost Activity Base Procurement $156,000 Number of purchase orders Scheduling 10,000 Number of production orders Materials handling 22,440 Number of moves Product development 26,640 Number of engineering changes Total cost $215,000 The estimated activity are usage and unit information for two product lines was determined as follows: Number of Number of Number of Number of Purchase Orders Production Orders Engineering Change Orders Ovens 660 270 400 130 1,460 Refrigerators 640 130 280 50 1,100 1,300 400 680 2,560 Moves Units Totals 180 a. Determine the activity rate for each activity cost pool. If required, round your answers to the nearest dollar Procurement (per purchase order) Scheduling (per production order) Number of Purchase Orders Number of Production Orders 270 Number of Moves 400 Number of Engineering Change Orders 130 660 Ovens Refrigerators Totals 640 130 280 50 1 1,300 400 680 180 INI a. Determine the activity rate for each activity cost pool. If required, round your answers to the nearest dollar. Procurement (per purchase order) Scheduling (per production order) Materials handling (per move) Product development (per engineering change order) b. Determine the activity-based cost per unit of each product. Round your answers to the nearest cent. Ill! Ovens per unit Refrigerators per unit
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