Chipman Inc. produces water pumps. Overhead costs have been identified as follows: Activity Pool Material handling...

   

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Chipman Inc. produces water pumps. Overhead costs have been identified as follows: Activity Pool Material handling Material maintenance Setups Activity Driver Number of moves Number of machine hours Number of production runs Cost $74,025.00 $73,600.00 $78,435.00 Units produced Number of moves Machine hours Production runs Activity 470 36,800 63 Chipman makes 3 models of pumps with the following details: Economy Standard 10,180 21,900 174 129 9,750 22,000 24 14 Premium 3,550 167 5,050 25 Required: a. Calculate the activity rate for each activity. (Round your answers to 2 decimal places.) b. Determine the amount of indirect costs assigned to each of the products. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) Chipman Inc. produces water pumps. Overhead costs have been identified as follows: Activity Pool Material handling Material maintenance Setups Activity Driver Number of moves Number of machine hours Number of production runs Cost $74,025.00 $73,600.00 $78,435.00 Units produced Number of moves Machine hours Production runs Activity 470 36,800 63 Chipman makes 3 models of pumps with the following details: Economy Standard 10,180 21,900 174 129 9,750 22,000 24 14 Premium 3,550 167 5,050 25 Required: a. Calculate the activity rate for each activity. (Round your answers to 2 decimal places.) b. Determine the amount of indirect costs assigned to each of the products. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

Answer rating: 100% (QA)

a Activity pool Activity rate Material handling 15750 Material Maintenance 200 Setups b Economy ... View the full answer