The Klamath Corp. produces two products, saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as follows:

a. Determine the activity rate for each activity.

Stamping...................$ 20 per machine hour

Assembly...................$ 20 per labor hour

Setup..........................$ 2,000 per setup

b. Determine the overhead cost per unit for each product.

Saws $_______per unit

Drills $_______per unit

Transcribed Image Text:

Activity: Stamping, Assembly, Setup, Activity Base: Machine hours, Labor hours, Number of setups. Budgeted Costs: $200,000, $400,000, $30,000, Saws: 4,000, 7,000, 3. Drills: 6,000, 13,000, 12, Activity Base Machine hours Labor hours Number of setups Total 10,000 20,000 15 Activity: Stamping, Assembly, Setup, Activity Base: Machine hours, Labor hours, Number of setups. Budgeted Costs: $200,000, $400,000, $30,000, Saws: 4,000, 7,000, 3. Drills: 6,000, 13,000, 12, Activity Base Machine hours Labor hours Number of setups Total 10,000 20,000 15

Answer rating: 100% (QA)

a Calculation of activity rate Stamping Budgeted Costs Machine tour Stamping 200000 1000... View the full answer