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Output totaled 40000 units each unit requires three machine

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Reference no: EM13605927

Compute the activity cost rates for materials handling, assembly, and design based on these data:
Materials
Cloth 26,000
Fasteners 4,000
Purchased parts 40,000

Materials handling
Labor 8,000
Equipment depreciation 5,000
Electrical power 2,000
Maintenance 6,000

Assembly
Machine operations 5,000

Design
Labor 5,000
Electrical power 1,000
Overhead 8,000

Output totaled 40,000 units. Each unit requires three machine hours of effort. Materials handling costs are allocated to the products based on direct materials cost. Design costs are allocated based on units produced. Assembly costs are allocated based on 500 machine operator hours.

Reference no: EM13605927

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