Question: Required: 1. Using the pool rates and the information from the product relational table, calculate the unit overhead cost for each product. 2. Using the
Required:
1. Using the pool rates and the information from the product relational table, calculate the unit overhead cost for each product.
2. Using the pool rates and the information from. the product relational table,, calculate the pverhead cost dor each activity driver.

$24 B. Green Mountain Manufacturing has recently installed an activity-based relational data base. Using the information contained in the activity relational table, the following pool rates were computed: $400 per purchase order per machine hour, Process R per machine hour, Process S $80 per engineering hour per packing order per square foot $30 $200 Two products are produced by Green Mountain: Normal and Excellent. Each product has an area in the plant that is dedicated to its production. The plant has two manufacturing processes, the Normal process (Process R) and the Excellent process (Process S). Other processes include engineering, product handling, and procurement. The product relational table for Green Mountain is as follows: Normal Product: Activity Driver # Name Activity Usage Units 800,000 Purchase orders 1,000 Machine hours 320,000 Engineering hours 5,000 Packing orders 400,000 Square footage 6,000 Excellent Product: Activity Driver # Name Activity Usage Units 100,000 Purchase orders 500 40,000 Machine hours Engineering hours Packing orders Square footage 6,000 100,000 4.000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
