Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for...

Transcribed Image Text:

Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates It will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity Cost Estimated Use Per Twin Use Per Double Driver Pools Overhead Square feet of pine Framing 210,000 5,000 2,000 Square feet of quilting Padding 220,000 120,000 100,000 Square feet of filling Number of boxes 240,000 Filling 320,000 500,000 300,000 Labelling 800,000 400,000 Number of inspections Inspection 170,000 12.000 5,000 For Question 1, what is the Activity Rate for the Framing pool? O $30 $65 O $10 O $25 Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates It will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity Cost Estimated Use Per Twin Use Per Double Driver Pools Overhead Square feet of pine Framing 210,000 5,000 2,000 Square feet of quilting Padding 220,000 120,000 100,000 Square feet of filling Number of boxes 240,000 Filling 320,000 500,000 300,000 Labelling 800,000 400,000 Number of inspections Inspection 170,000 12.000 5,000 For Question 1, what is the Activity Rate for the Framing pool? O $30 $65 O $10 O $25

Answer rating: 100% (QA)

answers A E F G H 1 Calculation of Cost per Driver Estimated 2 Use per Total Use TwinDouble b 3 Act... View the full answer