Business, 27.08.2021 18:30 aylinkayla
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 hours
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 of setups 3 12 15
Units produced 500 600
Required:
a. Determine the activity rate for each activity.
b. Determine the overhead cost per unit for each product.
Answers: 3
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The Klamath Corp. produces two products, saws and drills. Three activities are used in their manufac...
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