Refer to the data for Theatre Seating, Inc., in Exercise 8-15 and the following additional details concerning the activity rates:

Management has provided their ease of adjustment codes for purposes of preparing action analyses.
Ease of
Adjustment Codes
Direct materials . . . . . . . . . . . . . . . . . . . . . . . Green
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . Yellow
Manufacturing overhead:
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . Yellow
Factory equipment depreciation . . . . . . . . . . . . Red
Factory administration . . . . . . . . . . . . . . . . . . . . Red
Selling and administrative:
Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . Red
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . Red
Marketing expenses . . . . . . . . . . . . . . . . . . . . Yellow

Required:
Using Exhibit 8A–5 as a guide, prepare an action analysis report for CineMax Entertainment similar to those prepared for products.

Data from Exercise 8-15

The company just completed a single order from CineMax Entertainment Corporation for 2,400 custom seats. The order was produced in four batches. Each seat required 0.8 direct labor-hours. The selling price was $137.95 per seat, the direct materials cost was $112.00 per seat, and the direct labor cost was $14.40 per seat. This was the only order from CineMax Entertainment for the year. 

Transcribed Image Text:

Rates Supporting Batch Direct Labor Processing Order Customer Service Manufacturing overhead: $ 1.80 7.35 2.10 $72.00 3.25 7.00 $1 Factory equipment depreciation. Factory adm 0.00 28.00 S 0.00 0.00 268.00 ministration . Selling and administrative: Wages and salaries Depreciation Marketing expenses 0.50 0.00 0.25 $12.00 13.00 0.75 0.00 $96.00 153.00 1,864.00 26.00 462.00 $284.00 $2,620.00 6.00 79.00 Total activity rate