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Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have
Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:
Product | Machine Hours | Setups | Receiving Orders | Packing Orders | ||||||||
Infantry | 20,000 | 300 | 900 | 1,600 | ||||||||
Special forces | 20,000 | 100 | 100 | 800 | ||||||||
Costs | $80,000 | $24,000 | $18,000 | $30,000 |
Required:
- Calculate the total overhead assigned to each product by using only machine hours to calculate a plantwide rate.
- Calculate consumption ratios for each activity. (Round to two decimal places.)
- Calculate a rate for each activity by using the associated driver. (Round to two decimal places.)
- Assign the overhead costs to each product by using the activity rates computed in Requirement 3.
- Conceptual Connection Comment on the difference between the assignment in Requirement 1 and the activity-based assignment.
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