Maching hoursProduction runs9,8002021,600165,90028Requlred:a. Calculate the activity rate for each activity, (Round your answers to 2 decimal places.)Activlty PoolActivity RateMaterial HandlingMachine Maintenance37Setupsb. Determine the amount of indirect costs assigned to each of the products. (Do not round your intermediate calculations. Roundyour answers to 2 declmal places.)ModelsCostEconamyStandardPremium Chipman Inc, produces water pumps. Overhead costs have been identified as follows:CostActivity PoolKaterial bandlingMachine maintenance$64,575.00$74,600.00$79,360.00SetupsActivity DriverNumber of movesActivity41037,30064Number of machine hoursNumber of production runsChipman makes 3 models of pumps with the following details:Units producedNumber of movesEconomy Standard Premium10,02020,60012921,6003,590111170Machine houreProduction runs9,8005,900201628Requlred:a. Calculate the activity rate for each activity. (Round your answers to 2 decimal places.)Activity PoolMaterial HandlingActivity RateMachine MaintenanceSetups

Answered: Chipman Inc. produces Activity Pool…

Business

Accounting

Chipman Inc. produces Activity Pool Katerial handling Machine mainteDance Cost $64,575.00 $74,600.00 $79,360.00 Setups

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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Q. 2 Índigo manufacturing has five activity cost pools and two products ( a budget tape vacuum and a deluxe tape vacuum). Information is presented below:
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