6-40 Project 3 - Activity Center Budgeted Costs Cost Driver...

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Activity Center Budgeted Costs Cost Driver Materials Handling $312,400 Direct materials cost Production scheduling $116,000 Number of production orders Setups $144,600 Number of setups Manual machinery $986,000 Direct labor hours Automated machinery $3,212,000 Machine hours Finishing $1,798,000 Direct labor hours Packaging and Shipping $234,000 Numbers of orders shipped Gears Shafts Casings Units produced 10,000 2,000 700 Direct materials cost per unit $60 $80 $100 Numbers of production orders 40 20 10 Number of setups 20 10 14 Direct labor hours 20,000 10,000 8,400 Machine hours 30,000 15,000 2,800 Number of orders shipped 1,000 1,500 70 Overhead rate for each activity (#1) Materials Handling 0.3764 Production scheduling 1657.1429 Setups 3286.3636 Manual machinery 25.6771 Automated machinery 67.1967 Finishing 46.8229 Packaging and Shipping 91.0506 Total budgeted cost $6,803,000 Overall rate based on direct labor hours (#2)
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