Activity Cost Pool Activity Measure Estimated Overhead Cost Machining Machine-hours %24 378,000 HR Supporting direct labour 24 Direct labor-hours 238,800 2$ Machine setups Number of setups 93,100 Number of product $ Product-sustaining lines 90,000 %24 Total 799,900 The expected activity for the year was distributed among the company's two product lines as follows: Activity Measure Machine-hours Product A Product B 7900 6100 Direct labor-hours 7900 4100 Number of setups 40 150 Number of product lines Required: 1. Based on the data of four cost pools and activity measures, compute the activity rate for each activity cost pool: a. What is the activity rate for the Machining activity cost pool? Round to nearest dollar Activity rate: $ per machine-hour b. What is the activity rate for the Supporting Direct Labour activity cost pool? Round to nearest dollar Activity rate: $ per direct labour-hour

Activity Cost Pool Activity Measure Estimated Overhead Cost Machining Machine-hours %24 378,000 HR Supporting direct labour 24 Direct labor-hours 238,800 2$ Machine setups Number of setups 93,100 Number of product $ Product-sustaining lines 90,000 %24 Total 799,900 The expected activity for the year was distributed among the company's two product lines as follows: Activity Measure Machine-hours Product A Product B 7900 6100 Direct labor-hours 7900 4100 Number of setups 40 150 Number of product lines Required: 1. Based on the data of four cost pools and activity measures, compute the activity rate for each activity cost pool: a. What is the activity rate for the Machining activity cost pool? Round to nearest dollar Activity rate: $ per machine-hour b. What is the activity rate for the Supporting Direct Labour activity cost pool? Round to nearest dollar Activity rate: $ per direct labour-hour

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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