Activity Rates Patten Company uses activity-based costing (ABC). Patten manufactures toy cars using two activities: plastic...
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Activity Rates Patten Company uses activity-based costing (ABC). Patten manufactures toy cars using two activities: plastic injection molding and decal application. Patten's 20X1 total budgeted overhead costs for these two activities are $377,000 (90% for injection molding and 10% for decal application). Molding overhead costs are driven by the number of pounds of plastic that are molded together. Decal application overhead costs are driven by the number of decals applied to toys. The budgeted activity data for 20x1 are as follows: Pounds of plastic molded 2,090,000 Number of decals applied 214,000 Required: 1. Calculate the activity rate for the plastic injection molding activity. Round your answer to the nearest cent. per pound molded 2. Caleulate the activity rate for the decal application activity, Round your answer to the nearest cent. per decal applied Activity Rates Patten Company uses activity-based costing (ABC). Patten manufactures toy cars using two activities: plastic injection molding and decal application. Patten's 20X1 total budgeted overhead costs for these two activities are $377,000 (90% for injection molding and 10% for decal application). Molding overhead costs are driven by the number of pounds of plastic that are molded together. Decal application overhead costs are driven by the number of decals applied to toys. The budgeted activity data for 20x1 are as follows: Pounds of plastic molded 2,090,000 Number of decals applied 214,000 Required: 1. Calculate the activity rate for the plastic injection molding activity. Round your answer to the nearest cent. per pound molded 2. Caleulate the activity rate for the decal application activity, Round your answer to the nearest cent. per decal applied
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Cornerstones of Managerial Accounting
ISBN: 978-1305103962
6th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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