Question

Activity cost pools Materials handling Machine maintenance $48,590 $10,120 Cost drivers Number of material moves Number of machine hours 430 46,000 Required: 1. Calculate Bluefield's activity rate for each cost pool. 2. Determine the amount of overhead assigned to Bluefield's products if each has the following activity demands: Number of material moves Number of machine hours Product A Product B 240 190 17,900 28,100 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Bluefield's activity rate for each cost pool. (Round your final answer for per material moves to nearest dollar amount and per machine hour to 4 decimal places.) Activity Rate Materials Handling per Material Move Machine Maintenance per Machine Hour

Answer 1

Requirement 1:

	Activity Rate
Materials handling	$113	per Machine Move
Machine maintenance	$0.2200	per Machine Hour

Calculations:

	Cost pool	/	Cost driver	=	Activity rate
Materials handling	$48,590	/	430	=	$113
Machine maintenance	$10,120	/	46,000	=	$0.2200

Requirement 2:

	Total overhead assigned
Product A	$31,058
Product B	$27,652

Calculations:

Product A
	Cost driver	x	Activity rate	=	Total cost
Materials handling	240	x	$113	=	$27,120
Machine maintenance	17,900	x	$0.2200	=	$3,938
Total cost					$31,058
Product B
	Cost driver	x	Activity rate	=	Total cost
Materials handling	190	x	$113	=	$21,470
Machine maintenance	28,100	x	$0.2200	=	$6,182
Total cost					$27,652