Question: Compute the activity cost rates for materials handling, assembly, and design based on these data: Materials Cloth..........$26,000 Fasteners........4,000 Purchased parts.....40,000 Materials Handling Labor.......... 8,000 Equipment

Compute the activity cost rates for materials handling, assembly, and design based on these data:

Materials

Cloth..........$26,000

Fasteners........4,000

Purchased parts.....40,000

Materials Handling

Labor.......... 8,000

Equipment depreciation... 5,000

Electrical power...... 2,000

Maintenance...... 6,000

Assembly

Machine operators...... 5,000

Design

Labor ......... 5,000

Electrical power......1,000

Overhead........8,000

Output totaled 40,000 units. Each unit requires three machine hours of effort. Materials handling Costs are allocated to the products based on direct materials cost. Design costs are allocated based on units produced. Assembly costs are allocated based on 500 machine operator hours.

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