Answer:
Product A = $<u> 39780 </u>
Product B
= $ <u> 17674 </u>
Product C = $<u>13560 </u>
Product D= $ <u> 10936 </u>
Explanation:
<u>Activity Cost Pool Expected Activity
</u>
<u> Product A Product B Product C Product D
</u>
Labor 9100 1750 4200 4200
Purchase orders 80 260 720 760
Product testing 4000 1040 0 1280
Template etching 0 624 240 496
<u>General factory 26600 14,000 8400 19,600</u>
<u>Total 39780 17674 13560 10936 </u>
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<u>Working</u>
Activity Cost Pool Expected Activity
Product A Product B Product C Product D
Labor-related (DLHs) 650*14 125*14 300*14 300*14
Purchase orders (orders) 20*4 65*4 180*4 190
*4
Product testing (tests) 250*16 65*16 0*16 80*16
Template etching (templates) 0*24 26*24 10*24 4*24
General factory (MHs) 3,800*7 2,000*7 1,200*7 2,800*7
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Direct Labor Hours Rate= Direct labor-hours / No . of Hours
= $ 19,250/ 1375= 14
Purchase Order rate= Purchase orders/ Number of orders
= $ 1,820 / 455 orders
=4
Product testing rate =Product testing /Number of tests
=$ 6,320/ 395 tests
=16
Template etching rate= Template etching / Number of templates
=$ 960 /40 templates
=24
General factory rate = General factory/ Machine-hours
= $ 68,600/9,800 MHs
= 7
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