Drill Master Corp. produces two products: saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as follows: Activity Budgeted Costs Activity Base Stamping $200,000 Machine hours Assembly 400,000 Labor hours Setup 36,000 Number of setups Activity Base Saws Drills Total Machine hours 1,000 3,000 4,000 Labor hours 10,000 20,000 30,000 Number of setups 6 12 18 Units produced 500 600 a. Determine the activity rate for each activity. b. Determine the factory overhead to be allocated to EACH unit of product. Round to the nearest cent. Show work!!

Drill Master Corp. produces two products: saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as follows: Activity Budgeted Costs Activity Base Stamping $200,000 Machine hours Assembly 400,000 Labor hours Setup 36,000 Number of setups Activity Base Saws Drills Total Machine hours 1,000 3,000 4,000 Labor hours 10,000 20,000 30,000 Number of setups 6 12 18 Units produced 500 600 a. Determine the activity rate for each activity. b. Determine the factory overhead to be allocated to EACH unit of product. Round to the nearest cent. Show work!!

Name: Drill Master Corp. produces two products: saws and drills. Three activ
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Description: Drill Master Corp. produces two products: saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as follows:ActivityBudgeted CostsActivity BaseStamping$200,000Machine hoursAssembly40

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

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