Ch. 3.5.doc - Roberts Company produces two weed eaters basic and advanced The company has four activities machining engineering receiving and inspection

Ch. 3.5.doc - Roberts Company produces two weed eaters...

This preview shows page 1 - 2 out of 2 pages.

Roberts Company produces two weed eaters: basic and advanced. The company has fouractivities: machining, engineering, receiving, and inspection. Information on these activitiesand their drivers is given below.Overhead costs:Machining……………………. $6,000,000Engineering……………………. 2,000,000Receiving……………………. 560,000Inspecting products……………360,000Required:1. Calculate the four activity rates.2. Calculate the unit costs using activity rates. Also, calculate the overhead cost per unit.3. What if consumption ratios instead of activity rates were used to assign costs instead ofactivity rates? Show the cost assignment for the inspection activity. SOLUTION
Image of page 1
Image of page 2

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture