What is the activity rate for the inspection pool

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Reference no: EM133145092

Question - Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows:

Activity Cost Pools

Driver

Estimated Overhead

Use Per Twin

Use Per Double

Framing

Square feet of pine

210,000

5,000

2,000

Padding

Square feet of quilting

220,000

120,000

100,000

Filling

Square feet of filling

320,000

500,000

300,000

Labelling

Number of boxes

240,000

800,000

400,000

Inspection

Number of inspections

170,000

12,000

5,000

For Question 1, what is the Activity Rate for the Framing pool?

Using the table from Question 1, what is the Activity Rate for the Inspection pool?

Using the table from Question 1, what is the Total Cost Per Twin?

Reference no: EM133145092

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