Question
Wilson Company produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities involved in the production have
Wilson Company produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities involved in the production have been identified as: 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 |
35mm | 12,000 | 200 | 300 | 500 |
Digital | 12,000 | 450 | 600 | 2,500 |
Costs | $70,000 | $50,000 | $15,000 | $30,000 |
Using an activity rate for receiving based on receiving orders, assign receiving costs to the 35mm cameras. (Note: Round the activity rate to two decimal places).
$10,000 $5,000 $15,000 $6,000
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