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undefined Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on
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Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Basic Advanced Total Units produced 90,000 270,000 Prime costs $6,840,000 $31,320,000 $38,160,000 Machine hours 90,000 450,000 540,000 Engineering hours 400 3,600 4,000 Receiving orders 200 600 800 Inspection hours 600 1,200 1,800 Overhead costs: Machining $7,560,000 Engineering 2,040,000 Receiving 248,000 Inspecting products 234,000 Required: 1. Calculate the four activity rates. Machining rate $ per machine hour Engineering rate $ per hour Receiving rate $ per order Inspecting rate $ per hour 2. Calculate the unit costs using activity rates. Round your answers to the nearest cent. Unit cost Basic per unit Advanced per unit Calculate the overhead cost per unit. Round your answers to the nearest cent. Overhead Cost Basic per unit Advanced per unit 3. If consumption ratios instead of activity rates were used to assign costs instead of activity rates, show the cost assignment for the inspection activity. Cost assignment Basic Advanced $Step by Step Solution
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