Patten Company uses activity-based costing (ABC). Patten manufactures toy cars using two activities: plastic injection molding and decal application. Patten’s 20X1 total budgeted overhead costs for these two activities are $513,000 (80% for injection molding and 20% for decal application). Molding overhead costs are driven by the number of pounds of plastic that are molded together. Decal application overhead costs are driven by the number of decals applied to toys. The budgeted activity data for 20X1 are as follows:
Pounds of plastic molded | 2,050,000 |
Number of decals applied | 263,000 |
Required:
1. Calculate the activity rate for the plastic
injection molding activity. Round your answer to the nearest
cent.
$ per pound molded
2. Calculate the activity rate for the decal
application activity. Round your answer to the nearest cent.
$ per decal applied
Calculate activity rate
Activity | Estimated overhead | Estimated activity | Activity rate |
Plastic injection molding activity | 513000*80% = 410400 | 2050000 | 0.20 per pound molded |
Decal application activity | 513000*20% = 102600 | 263000 | 0.39 per decal applied |
Patten Company uses activity-based costing (ABC). Patten manufactures toy cars using two activities: plastic injection molding...
Patten Company uses activity-based costing (ABC). Patten manufactures toy cars using two activities: plastic injection molding and decal application. Patten’s 20X1 total budgeted overhead costs for these two activities are $413,000 (80% for injection molding and 20% for decal application). Molding overhead costs are driven by the number of pounds of plastic that are molded together. Decal application overhead costs are driven by the number of decals applied to toys. The budgeted activity data for 20X1 are as follows: Pounds...
Activity Rates Patten Company uses activity-based costing (ABC). Patten manufactures toy cars using two activities: plastic injection molding and decal application. Patten’s 20X1 total budgeted overhead costs for these two activities are $444,000 (80% for injection molding and 20% for decal application). Molding overhead costs are driven by the number of pounds of plastic that are molded together. Decal application overhead costs are driven by the number of decals applied to toys. The budgeted activity data for 20X1 are as...
Activity Rates Patten Company uses activity-based costing (ABC). Patten manufactures toy cars using two activities: plastic injection molding and decal application. Patten's 20x1 total budgeted overhead costs for these two activities are $508,000 (90% for injection molding and 10% for decal application). Molding overhead costs are driven by the number of pounds of plastic that are molded together. Decal application overhead costs are driven by the number of decals applied to toys. The budgeted activity data for 20x1 are as...
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