The Young Corporation has the following overhead costs. Maintenance: $100,000 Supervisor Salaries: $150,000 After an ABC study, Young Corporation has the following activities and percentages. Planning Forming Other Maintenance 40% 50% 10% Supervisor Salaries 40% 25% 35% The Planning activity uses the activity driver of batches, and the Young Corporation budgets 1,000 batches. The Forming activity uses the activity driver of machine hours, the Young Corporation budgets 500 machine hours. The firm is considering whether to use TDABC or normal ABC. The firm has the following TDABC information. The following would use planner hours for TDABC. The firm has a practical capacity of 10,000 planner hours. The Planning activity uses 2.75 planner hours per batch. The Forming activity uses 5.5 planner hours per machine hour. What is the firm's activity rate for the Planning activity using normal ABC and TDABC?

Answer rating: 100% (QA)

To calculate the activity rate for the Planning activity using both traditional ABC and TimeDriven A... View the full answer