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Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows:
Vaquero VaqueraCutting hours 4,000 5,400 Assembly hours 2,850 4,650 Inspection hours 945 2,430 Rework hours 150 450
The following activity data have been collected:
Cutting $225,600Assembling 300,000Inspecting 67,500Reworking 45,000
Required:
Problem 1: Calculate the activity rates that would be used to assign costs to each product.
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