Compute activity rate for plastic injection molding activity

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Reference no: EM13938959

ACTIVITY RATES

Johanssen Company uses activity-based costing (ABC). Johansson manufactures out- door water toys using two activities: plastic injection molding and decal application. Johansson's 2009 total budgeted overhead costs for these two activities are $250,000 (70 percent for injection molding and 30 percent for decal application). Molding over- head costs are driven by the number of pounds of plastic that are molded together. Decal application overhead costs are driven by the number of decals applied to toys. The bud- geted activity data for 2008 are as follows:
Pounds of plastic molded 1,750,000
Number of decals applied 187,500

Required:

1. Calculate the activity rate for the plastic injection molding activity.

2. Calculate the activity rate for the decal application activity.

Reference no: EM13938959

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