Question

The total factory overhead for Continental Styles, Inc., is budgeted for the year at $360,000, divided into four activity pools: cutting, $120,000; sewing, $60,000; setup, $100,000; and inspection, $80,000. Continental manufactures two types of men’s pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as follows:


Each product is budgeted for 20,000 units of production for the year. Determine (a) the activity rates for each activity and (b) the activity-based factory overhead per unit for eachproduct.


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  • CreatedMay 23, 2012
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