Business, 30.03.2020 21:48 AnxiousKid

Activity Budgeted Activity Cost
Production $500,000
Setup $144,000
Inspection $44,000
Shipping $115,000
Customer service $84,000
Total $887,000

The activity bases identified for each activity are as follows:

Activity Activity Base
Production Machine hours
Setup Number of setups
Inspection Number of inspections
Shipping Number of customer orders
Customer service Number of customer service requests

The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows:

Machine Number of Number of Number of Customer Units
Hours Setups Inspections Customer Service
Orders Requests
White Sugar 5,000 85 220 1,150 60 10,000
Brown Sugar 2,500 170 330 2,600 350 5,000
Powdered Sugar 2,500 195 550 2,000 190 5,000
Total 10,000 450 1,100 5,750 600 20,000

Each product requires 0.5 machine hour per unit.

Required:

1. Determine the activity rate for each activity.
2. Determine the total and per-unit activity cost for all three products.

Answers: 2

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Answers

Answer from: GreenHerbz206

Activity Rate = Activity Cost/ Driver Costs= $ 500,000/10,000= 50

Activity Budgeted Budgeted Budgeted

Activity Cost Cost Driver Activity Rate

Production $500,000 10,000 50

Setup $144,000 450 320

Inspection $44,000 1100 40

Shipping $115,000 5750 20

Customer service $84,000 600 140

Total $887,000

White Brown Powdered Total

Sugar Sugar Sugar

Units 10,000 5000 5000 20,000

Production 250,000 125,000 125,000 500,000

Setup $ 27200 54,400 62400 144,000

Inspection $ 8800 13200 22000 44000

Shipping $ 23000 52,000 40,000 115000

Customer service $ 8400 49,000 26,600 $ 84,000

Total $ 317,400 $ 293,600 $276,000 $887,000

Per Unit Cost $ 31.74 $58.72 $ 55

Working

White Brown Powdered Total

Sugar Sugar Sugar

Machine Hours 5000 2500 2500 10,000

Production *50 *50 *50

$ 250,000 $ 125,000 $ 125,000

Number of setups 85 170 195 450

Setup * 320 * 320 * 320

27,200 54,400 62,400

Number of inspections 220 330 550 1100

Inspection *40 *40 *40

8800 13200 22000

Number of customer 1150 2600 2000 5750

Orders

Shipping *20 *20 *20

23,000 52000 40,000

Number of customer 60 350 190 600

Service Requests

Customer service *140 *140 *140

8400 49000 26,600

Units 10,000 5000 5000 20,000

Answer from: Quest

answer; 20% is your answer;

Answer from: Quest

Because she is a liberal

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Activity Budgeted Activity Cost
Production $500,000
Setup $144,000
Inspection $44,...

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