Kramer corporation is a diversified manufacturer of

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Reference no: EM13600673

Kramer corporation is a diversified manufacturer of consumer goods. The company activity based costing system has the following seven activity cost pools :

Activity Cost Pool :         Estimated overhead cost:             Expected Activity :

Labor related            48000                                       20000 direct labor hours
Machine related                 67500                                        45000 Machine hours
Machine setups                  84000                                       600 setup
Production orders          112000                                      400 orders
Product testing            58500                                        900 tests
Packaging 0                     90000      6000 packages
General factory          672000                                      20000 direct labor hours

Require:
1) Compute the activity rate for each activity cost pool

2) Compute the company's predetermined overhead rate, assuming that the company uses a single plant wide determined overhead rate based on direct labor hours.

Reference no: EM13600673

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