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

 

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Chipman Incorporated, produces water pumps. Overhead costs have been identified as follows: Activity Pool Material handling. Machine maintenance Setups Units produced Number of moves Machine hours Production runs Economy Cost Cost Driver Number of moves Number of machine hours. Number of production runs Chipman makes three models of pumps with the following activity demands: 10,100 183 9,500 20 $ 76,387.50 76,000.00 83,708.00 Total Activity 485 38,000 68 Standard 20,500 131 21,800 15 Premium 3,570 171 6,700 33 Required: a. Calculate the activity rate for each activity. b. Determine the amount of indirect costs assigned to each of the products. Chipman Incorporated, produces water pumps. Overhead costs have been identified as follows: Activity Pool Material handling. Machine maintenance Setups Units produced Number of moves Machine hours Production runs Economy Cost Cost Driver Number of moves Number of machine hours. Number of production runs Chipman makes three models of pumps with the following activity demands: 10,100 183 9,500 20 $ 76,387.50 76,000.00 83,708.00 Total Activity 485 38,000 68 Standard 20,500 131 21,800 15 Premium 3,570 171 6,700 33 Required: a. Calculate the activity rate for each activity. b. Determine the amount of indirect costs assigned to each of the products.

Answer rating: 100% (QA)

The activity rate for each activity is calculated as follows Material handling activity rate Cost of Material handling Total number of moves 7638750 4... View the full answer