Answer:
a.- activity rate for producrement:
370,000 / 18,000 = 18.20
b.- for scheduling:
250,000 / 1,250 = 200
c.- for materials handling:
500,000 / 6,200 = 80,65
d.- for development:
730,000 / 45 = 16222,22222222222
e.- for machine hours:
1,500,000 / 20,000 = 75
f.-
disk $ 279.57
tape $ 232.69
wire $ 744.06
Explanation:
The budgeted activity cost and activity base data by product are provided below.
Procurement $370,000 Number of purchase orders
Scheduling $250,000 Number of production orders
Materials handling $500,000 Number of moves
Product development $730,000 Number of engineering changes
Production 1,500,000 Machine hours
purchase /production / moves/engineering /machine hours/ units
Disk drives 4,000 300 1,400 10 2,000 2,000
Tape drives 4,000 150 800 10 8,000 4,000
Wire drives 12,000 800 4,000 25 10,000 2,500
Total: 20,000 1,250 6,200 45 20,000
activity rate:
cost pool over cost driver:
a.- activity rate for producrement:
370,000 / 18,000 = 18.20
b.- for scheduling:
250,000 / 1,250 = 200
c.- for materials handling:
500,000 / 6,200 = 80,65
d.- for development:
730,000 / 45 = 16222,22222222222
e.- for machine hours:
1,500,000 / 20,000 = 75
f.- activity cost for disk drive:
<u>Disk drives </u>
4,000 x 18.2 = 72,800
300 x 200 = 60,000
1,400 x 80.65 = 112, 910
10 x 16,222.22 = 162,222.22
2,000 x 75 =<u> 150,000 </u>
Total Cost 557,932.22
Units: 2,000
Cost per unit: 557,932.22 / 2,000 = 278.96611
For the other two units we repeat the process for Disk Driver
<u>Wire tapes </u>
12,000 x 18.2 = 218,400
800 x 200 = 160,000
4,000 x 80.65 = 322,600
25 x 16,222.22 = 405,555.5
1,000 x 75 =<u> 750,000 </u>
Total Cost 1,856,555.5
units: 2,500
1,856,555.5 / 2,500 = 742,62
<u>Tape drives </u>
4,000 x 18.2 = 72,800
150 x 200 = 30,000
800 x 80.65 = 64,520
10 x 16,222.22 = 162,222.22
10,000 x 75 =<u> 600,000 </u>
Total Cost 929.542,22
units: 4,000
929,542.22 / 4,000 = 232,39