Reference no: EM131698706

Question: Zapato Company produces two types of boots: cowboy and cowgirl. There are four activities associated with the two products. Drivers for the four activities are as follows:

                                  Cowboy              Cowgirl

Cutting hours                  2,100                3,900

Assembly hours               1,500                 2,250

Inspection hours                675                 1,575

Rework hours                      75                    225

Activity Rates: Refer to the information for Zapato Company above. The following activity data have been collected:

Cutting                  $60,000

Assembling               75,000

Inspecting                18,000

Reworking                  9,000

Required: Calculate the activity rates that would be used to assign costs to each product.