Reddy has decided to use an ABC costing system and has identified the following detailed information about
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Question:
Reddy has decided to use an ABC costing system and has identified the following detailed information about its activity pools and cost drivers:
| Activity pools | |
|---|---|
| Materials handling | $ 64,400 |
| Machine maintenance | $ 18,900 |
| Cost drivers | |
| Number of material moves | 560 |
| Number of machine hours | 54,000 |
Required:
- Calculate Reddys activity rate for each activity pool.
- Determine the amount of overhead assigned to Reddys products if each has the following activity demands:
| Product A | Product B | |
|---|---|---|
| Number of material moves | 260 | 300 |
| Number of machine hours | 17,600 | 36,400 |
- Calculate Bluefields activity rate for each activity pool. Note: Round your final answer for per material moves to nearest dollar amount and per machine hour to 4 decimal places.
|
2. Determine the amount of overhead assigned to Bluefields products if each has the following activity demands: Note: Round intermediate calculations to 4 decimal places and your final answers to 2 decimal places.
| Product A | Product B | |
|---|---|---|
| Number of material moves | 260 | 300 |
| Number of machine hours | 17,600 | 36,400 |
|
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