Homework Answers
| 1 | ||
| Activity rate: | ||
| Supervision and maintenance | 32.0723 | =3215250/100250 |
| Setup costs | 71.2727 | =196000/2750 |
| Engineering costs | 66.2982 | =188950/2850 |
| Dees: | ||
| Supervision and maintenance | 1250819.7 | =39000*32.0723 |
| Setup costs | 28509.08 | =400*71.2727 |
| Engineering costs | 46408.74 | =700*66.2982 |
| Total | 1325737.52 | |
| Divide by annual production | 39000 | |
| Overhead per unit | 33.99 | |
| Option A $33.99 is correct | ||
| 2 | ||
| Activity rate: | ||
| Setup costs | 10.16 | =6450/635 |
| Engineering costs | 14.60 | =16500/1130 |
| Maintenance costs | 20.61 | =91150/4423 |
| Skateboards: | ||
| Setup costs | 2844.8 | =280*10.16 |
| Engineering costs | 9344 | =640*14.6 |
| Maintenance costs | 44270.28 | =2148*20.61 |
| Total | 56459.08 | |
| Divide by annual production | 1790 | |
| Overhead per unit | 31.54 | |
| Option D $31.54 is correct |
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