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Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activitiesproduction setup, procurement, quality control, and materials management.
Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activitiesproduction setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities:ActivityActivity CostActivity BaseProduction setup$ Number of setupsProcurement Number of purchase orders POQuality control Number of inspectionsMaterials management Number of componentsTotal$ The activitybase usage quantities for each product are as follows: SetupsPurchase OrdersInspectionsComponentsUnit VolumeCustom Standard Total
a Determine an activity rate for each activity.
b Assign activity costs to each product and determine the unit activity cost, using the activity rates from part a Round unit costs to the nearest cent.
tableSetups Total,Custom,Standard$$
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