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Determine the activity rates for each activity

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Problem - Activity-based costing: factory overhead costs - The total factory overhead for Urban Styles, Inc., is budgeted for the year at $225,000, divided into four activities: cutting, $22,500; sewing, $45,000; setup, $100,000; and inspection, $57,500. Urban manufactures two types of men's pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as follows:

Cutting

Sewing

Setup

Inspection

Jeans

750 dlh

1,500 dlh

1,600 setups

4,000 inspections

Khakis

1,500

700

400

1,750

2,250 dlh

2,250 dlh

2,000 setups

5,750 inspections

Each product is budgeted for 15,000 units of production for the year.

Determine the activity rates for each activity.

Determine the activity-based factory overhead per unit for each product.

Reference no: EM132690578

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