Question

Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below.
Overhead costs:
Machining ......... $6,000,000
Engineering ......... 2,000,000
Receiving ......... 560,000
Inspecting products ..... 360,000
Required:
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 of activity rates? Show the cost assignment for the inspection activity.


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  • CreatedSeptember 01, 2015
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