Answer:
Total Activity Cost = $238,750
Activity Cost per unit = $477.50/unit
Explanation:
Activity Rate for each Activity of Company Southeastern Papers:
Production = $220,000 / 1,100 mh = $200/mh
Setup = $117,000 / 260 setups = $450/setup
Moving = $21,000 / 600 moves = $35/move
Shipping = $105,000 / 1,000 customer orders = $105/customer order
Product Engineering = $102,000 / 170 test runs = $600/test run
Computer Paper Total Activity Cost and Activity Per Unit Cost:
Production = 400 mh x $200 per mh = $80,000
Setup = 80 setups x $450 per setup = $36,000
Moving = 230 moves x $35 per move = $8,050
Shipping = 310 customer order x $105 per customer order = $32,550
Product Engineering = 50 test run x $600 per test run = $30,000
Total Activity Cost = $80,000 + $36,000 + $8,050 + $32,550 + $30,000 = $186,600
Activity Cost Per Unit = $186,600 / 1,000 units = $186.60/unit
Newsprint Total Activity Cost and Activity Per Unit Cost:
Production = 500 mh x $200 per mh = $100,000
Setup = 30 setups x $450 per setup = $13,500
Moving = 70 moves x $35 per move = $2,450
Shipping = 140 customer order x $105 per customer order = $15,225
Product Engineering = 15 test run x $600 per test run = $9,000
Total Activity Cost = $100,000 + $13,500 + $2,450 + $15,225 + $9,000 = $140,175
Activity Cost Per Unit = $140,175 / 1,250 units = $112.14/unit
Specialty Paper Total Activity Cost and Activity Per Unit Cost:
Production = 200 mh x $200 per mh = $40,000
Setup = 150 setups x $450 per setup = $67,500
Moving = 300 moves x $35 per move = $10,500
Shipping = 550 customer order x $105 per customer order = $57,750
Product Engineering = 105 test run x $600 per test run = $63,000
Total Activity Cost = $40,000 + $67,500 + $10,500 + $57,750 + $63,000 = $238,750
Activity Cost Per Unit = $238,750 / 500 units = $477.50/unit
