Reference no: EM132739815

Question - Patten Company uses activity-based costing (ABC). Patten manufactures toy cars using two activities: plastic injection molding and decal application. Patten's 20X1 total budgeted overhead costs for these two activities are $439,000 (70% for injection molding and 30% for decal application). Molding overhead 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 budgeted activity data for 20X1 are as follows:

Pounds of plastic molded 2,060,000

Number of decals applied 220,000

Required -

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

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