Activity Cost Activity BaseProcurement$370,000Number of purchase ordersScheduling250,000Number of production ordersMaterials handlingProduct development 730,000500,000Number of movesNumber of engineering changesProduction1,500,000Machine hoursNumber of Number of Number Number ofNumberPurchase Production ofEngineering Machine ofOrdersOrdersMoves ChangesHours UnitsDisk drives 4,0003001,400102,0002,000Tape drives 4,000150800108,0004,000Wire drives 12,0008004,0002510,000 2,500The activity rate for the scheduling activity cost pool isa.$29.41 per production orderb.$200.00 per production orderc.$20.00 per production orderd.$10.42 per production order

Formula: Activity rate for the scheduling activity cost = Scheduling activity cost / Number of…

Activity Cost Activity Base Procurement $370,000 Number of purchase orders Scheduling Materials handling 500,000 Product development 730,000 250,000 Number of production orders Number of moves Number of engineering changes Production 1,500,000 Machine hours Number of Number of Number Number of Number Engineering Machine of Hours Units Purchase Production of Orders Orders Moves Changes

Activity Cost Activity Base Procurement $370,000 Number of purchase orders Scheduling Materials handling 500,000 Product development 730,000 250,000 Number of production orders Number of moves Number of engineering changes Production 1,500,000 Machine hours Number of Number of Number Number of Number Engineering Machine of Hours Units Purchase Production of Orders Orders Moves Changes

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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