Homework Answers
a. Machine setup activity rate = $150000 / (200+300) = $300 per setups
b. Material handling activity rate = $250000 / (6000*10 + 2000*20) / = $2.5 per parts
c. Machine depreciation activity rate = $720000 / (6000*1 + 2000*1.5) = $80 per MH
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estion 8: Tree Trunks Co. makes two different types of pastries: "Ples" and "Cakes Tree Trunks Co. currently uses ormal costing to find the costs of their pastries. They have been allocating costs based off a plant-wide allocation rate and used direct labor hours as their allocation base. Recently, they have decided to switch to activity based costing. Here is some of the information given regarding the two products and their production: Ples Cakes Direct Materials $960,000 $600,000 Activity Estimated...
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