E$4-6($Algo$)$ Calculating Activity Rates, Assigning Costs $[$LO $4-3,4-4]$

Fellar Corporation has identified the following information:

Activity pools

Materials handling $ $39,840$

Machine maintenance $ $27,200$

Cost drivers

Number of material moves $830$

Number of machine hours $68,000$

Required:

Calculate the activity rate for each activity pool.

Determine the amount of overhead assigned to Fellar$$s products if they have the following activity demands:

Product A Product B

Number of material moves $650180$

Number of machine hours $41,90026,100$

Using activity proportions, determine the amount of overhead assigned to Fellar$$s products.