Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The...

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Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows: Activity Procurement Budgeted Activity Cost Activity Base $12,600 Number of purchase orders Scheduling 90,000 Number of production orders Materials handling 11,000 Number of moves Product development Total cost 50,000 $163,600 Number of engineering changes The estimated activity-base usage and unit information for two product lines was determined as follows: Number of Number of Production Purchase Orders Orders Number of Moves Number of Engineering Change Orders Units Ovens 400 800 300 80 1,000 Refrigerators 300 400 200 120 500 Totals 700 1,200 500 200 1,500 a. Determine the activity rate for each activity cost pool. Procurement (per purchase order) Scheduling (per production order) Materials handling (per move) Product development (per engineering change order) 0000 b. Determine the activity-based cost per unit of each product. Round the per unit rates to the nearest cent. Ovens $ Refrigerators $ per unit per unit Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows: Activity Procurement Budgeted Activity Cost Activity Base $12,600 Number of purchase orders Scheduling 90,000 Number of production orders Materials handling 11,000 Number of moves Product development Total cost 50,000 $163,600 Number of engineering changes The estimated activity-base usage and unit information for two product lines was determined as follows: Number of Number of Production Purchase Orders Orders Number of Moves Number of Engineering Change Orders Units Ovens 400 800 300 80 1,000 Refrigerators 300 400 200 120 500 Totals 700 1,200 500 200 1,500 a. Determine the activity rate for each activity cost pool. Procurement (per purchase order) Scheduling (per production order) Materials handling (per move) Product development (per engineering change order) 0000 b. Determine the activity-based cost per unit of each product. Round the per unit rates to the nearest cent. Ovens $ Refrigerators $ per unit per unit

Answer rating: 100% (QA)

Answer To determine the activity rate for each activity cost pool we divide the budgeted activity co... View the full answer