Wildhorse Corp. reported the following detail for its budgeted MOH costs, broken into three key activities Activity Material handling Machining Inspections Total Budgeted Cost $50,000 Material handling Plant-wide MOH rate $ Machining Inspections 100,000 (a) Calculate Wildhorse's plant-wide MOH rate if allocations are based on machine hours. (Round answer to 2 decimal places, e.g. 15.25.) $ 36,000 $186,000 $ (b) Calculate activity rates for each key activity. $ Budgeted Quantity of Cost Driver material moves 10,000 machine hours inspections 2,000 4,000 Activity rate /machine hour /material move /machine hour /inspection
Wildhorse Corp. reported the following detail for its budgeted MOH costs, broken into three key activities Activity Material handling Machining Inspections Total Budgeted Cost $50,000 Material handling Plant-wide MOH rate $ Machining Inspections 100,000 (a) Calculate Wildhorse's plant-wide MOH rate if allocations are based on machine hours. (Round answer to 2 decimal places, e.g. 15.25.) $ 36,000 $186,000 $ (b) Calculate activity rates for each key activity. $ Budgeted Quantity of Cost Driver material moves 10,000 machine hours inspections 2,000 4,000 Activity rate /machine hour /material move /machine hour /inspection
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 38P: Friendly Bank is attempting to determine the cost behavior of its small business lending operations....
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![Wildhorse Corp. reported the following detail for its budgeted MOH costs, broken into three key activities.
Activity
Material handling
Machining
Inspections
Total
Plant-wide MOH rate
Material handling
Budgeted Cost
$50,000
100,000
36,000 4,000
Machining
Inspections
$
(a) Calculate Wildhorse's plant-wide MOH rate if allocations are based on machine hours. (Round answer to 2 decimal places, e.g. 15.25.)
(b) Calculate activity rates for each key activity.
$
$186,000
$
SA
Budgeted Quantity of
Cost Driver
$
2,000
10,000
material moves
Activity rate
machine hours
inspections
/machine hour
/material move
/machine hour
/inspection](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0669ab48-db2a-4d91-8999-90fdfd0f96f8%2Fd66dbbf5-56a6-4aa9-8140-bebbe59f8d42%2Fq417rb4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Wildhorse Corp. reported the following detail for its budgeted MOH costs, broken into three key activities.
Activity
Material handling
Machining
Inspections
Total
Plant-wide MOH rate
Material handling
Budgeted Cost
$50,000
100,000
36,000 4,000
Machining
Inspections
$
(a) Calculate Wildhorse's plant-wide MOH rate if allocations are based on machine hours. (Round answer to 2 decimal places, e.g. 15.25.)
(b) Calculate activity rates for each key activity.
$
$186,000
$
SA
Budgeted Quantity of
Cost Driver
$
2,000
10,000
material moves
Activity rate
machine hours
inspections
/machine hour
/material move
/machine hour
/inspection
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