question archive The Klamath Corp
The Klamath Corp
Subject:AccountingPrice: Bought3
The Klamath Corp. produces two products, saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as follows:
|
Activity: |
Budgeted Costs: |
Activity Base |
|
Stamping, |
$200,000 |
Machine hors |
|
Assembly, |
$400,000 |
Labor hours |
|
Setup, |
$30,000 |
Number of setups |
|
Activity Base: |
Saws: |
Drills: |
Total |
|
Machine hours, |
4,000 |
6,000 |
10,000 |
|
Labor hours, |
7,000 |
13,000 |
20,000 |
|
Number |
3 |
12 |
15 |
a. Determine the activity rate for each activity.
Stamping...................$ 20 per machine hour
Assembly...................$ 20 per labor hour
Setup..........................$ 2,000 per setup
b. Determine the overhead cost per unit for each product.
Saws $_______per unit
Drills $_______per unit
