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algol13
3 years ago
9

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

Business
1 answer:
Whitepunk [10]3 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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