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Determine the cost allocation rate for each activity

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Reference no: EM131162694

1. Columbus Co. has determined the following activity cost pools and cost driver levels for the year:

Activity Cost Pool                    Activity Cost                      Activity Cost Driver

machine setup                         $500,000                           11,500 setup hours

material handling                     $130,000                           2,500 tons of material

machine operation                  $475,000                            11,000 machine hours

The following data is for the production of one batch of product X:

units produced                    400

machine hours                        5

direct labor hours               180

direct labor costs               $6,000

direct materials cost          $50,000

tons of material                     14

setup hours                            6

Required:

Part A: Determine the cost allocation rate for each activity. (round to two decimals.)

Part B: Using the cost allocation rate calculated in Part A allocate indirect manufacturing costs to each activity.

Part C: Calculate the total product cost for a single batch of product X.

Part D: Calculate the total product cost per unit of each product X.

Reference no: EM131162694

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