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4 years ago

Product-Costing Accuracy, Consumption Ratios, Activity Rates, Activity Costing

Business

1 answer:

Whitepunk [10]4 years ago

3 0

Answer:

Tristar Manufacturing

1. Total Infantry Special forces

Machining, 80,000 46,315.79 33684.21

Setups, 24,000 13894.74 10,105.26

Receiving, 22,000 12736.84 9263.16

Packing 30,000 17368.42 12631.58

Working:

(27,500/47,500)* 80,000=46,315.79

(20,000/47,500)* 80,000=33684.21

The same rates are used for all costs 27,500/47,500= 0.5789 for Infantry

and 20,000/47,500= 0.4210 for Special forces

2. Consumption Ratios

Infantry Special forces Total

Machine Hours, 0.5789 0.4210 47,500

Setups, 0.75 0.25 400

Receiving Orders, 0.9 0.1 1000

Packing Orders 0.47 0.53 3400

3. Rate for Each activity

Machining $80,000/ 47,500= $1.68per machine hour

Setups $24000/ 400 setup = $ 60 per setup

Receiving $22,000/ 1000 receiving order = Receiving $ 22 per receiving order

Packing $30,000/3400 packing order= Packing $8.82 per packing order

4. Total Infantry Special forces

Machining, 80,000 46200 33800

Setups, 24,000 18000 6000

Receiving, 22,000 19800 2200

Packing 30,000 14112 15888

Working

Infantry Special forces

Machine Hours, 27,500 * 1.68 20,000*1.68

Setups, 300*60 100*60

Receiving Orders, 900* 22 100*22

Packing Orders 1600 *8.82 1,800* 8.82

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