Fellar Corporation has identified the following information: Activity pools Materials handling Machine maintenance Cost drivers Number of material moves Number of machine hours $ 45,600 $ 27,880 800 82,000 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 Number of material moves Number of machine hours Product A 490 41,600 3. Using activity proportions, determine the amount of overhead assigned to Fellar's Product B 310 40,400
Fellar Corporation has identified the following information: Activity pools Materials handling Machine maintenance Cost drivers Number of material moves Number of machine hours $ 45,600 $ 27,880 800 82,000 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 Number of material moves Number of machine hours Product A 490 41,600 3. Using activity proportions, determine the amount of overhead assigned to Fellar's Product B 310 40,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Fellar Corporation has identified the following information:
Activity pools
Materials handling
Machine maintenance
Cost drivers
Number of material moves
Number of machine hours
$ 45,600
$ 27,880
Number of material moves
Number of machine hours
800
82,000
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
Product A
490
41,600
Product B
310
40,400
3. Using activity proportions, determine the amount of overhead assigned to Fellar's
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