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Use the following data for problems #1 & #2: Belsky Corporation manufactures x-ray machines and has provided the following data from its activity-based costing system:
Use the following data for problems #1 & #2:
Belsky Corporation manufactures x-ray machines and has provided the following data from its activity-based costing system:
Activity Cost Pool
Total Cost
Total Activity
Assembly....................
$315,000
30,000
machine-hours
Processing orders......
$49,000
1,400
orders
Inspection...................
$77,000
1,100
inspection-hours
1. Calculate an activity rate for each of Belskys three activities that it would use in the final stage of allocating costs to its products. 2. Each year Belsky makes 500 units of its X-ray Machines requiring a total of 1,000 machine-hours, 60 orders, and 20 inspection-hours per year. In addition to the costs allocated through the activity pool, the product's direct materials cost is $50 per unit and its direct labor cost is $20 per unit. Use this information and the activity rates calculated in Problem #1 to find the Unit Cost for one X-ray Machine.
Use the following data for problems #1 & #2:
Belsky Corporation manufactures x-ray machines and has provided the following data from its activity-based costing system:
| Activity Cost Pool | Total Cost | Total Activity | |
| Assembly.................... | $315,000 | 30,000 | machine-hours |
| Processing orders...... | $49,000 | 1,400 | orders |
| Inspection................... | $77,000 | 1,100 | inspection-hours |
1. Calculate an activity rate for each of Belskys three activities that it would use in the final stage of allocating costs to its products.
2. Each year Belsky makes 500 units of its X-ray Machines requiring a total of 1,000 machine-hours, 60 orders, and 20 inspection-hours per year. In addition to the costs allocated through the activity pool, the product's direct materials cost is $50 per unit and its direct labor cost is $20 per unit.
Use this information and the activity rates calculated in Problem #1 to find the Unit Cost for one X-ray Machine.
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