Fellar Corporation has identified the following information: Activity pools Materials handling Machine maintenance Cost drivers Number of material moves Number of machine hours $ 40,320 $ 32,400 720 81,000 Required: 1. Calculate the activity rate for each activity pool. 2. Determine the amount of overhead assigned to Fellar's products if they have the following activity demands: Number of material moves Number of machine hours Product A 550 41,500 3. Using activity proportions, determine the amount of overhead assigned to Fellar's products. Product B 170 39,500
Fellar Corporation has identified the following information: Activity pools Materials handling Machine maintenance Cost drivers Number of material moves Number of machine hours $ 40,320 $ 32,400 720 81,000 Required: 1. Calculate the activity rate for each activity pool. 2. Determine the amount of overhead assigned to Fellar's products if they have the following activity demands: Number of material moves Number of machine hours Product A 550 41,500 3. Using activity proportions, determine the amount of overhead assigned to Fellar's products. Product B 170 39,500
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 8EA: Rex Industries has identified three different activities as cost drivers: machine setups, machine...
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