Answer:
The correct answer for option (1) is $24 per material move, $6.5 per Inspection, $1.9 per Machine-Hour, for option (2) is $10,469, and for option (3) is $13,328.
Explanation:
According to the scenario, the following calculation can be done as follows:
(1) Activity rates:
Material Handling = $2,304 ÷ ( 45 + 51 ) = $24 per material move
Quality control = $8,060 ÷ (550 + 690 ) = $6.5 per Inspection
Machine maintenance = $13,433 ÷ ( 3,060 + 4,010 ) = $1.9 per Machine-Hour.
(2) Factory overhead cost:
Standard:
Overhead total costs: (45 × $24) + (550 × $6.5) + (3,060 × $1.9)
= (1,080 + 3,575 + 5,814) = $10,469
(3) Deluxe:
Overhead total costs: (51 × $24) + (690 × $6.5) + (4010 × $1.9)
= ( 1,224 + 4,485 + 7,619) = $13,328
