Calculating Activity Rates, Assigning Costs
Titan Corp. has identified the following information:
Cost pools |
|
Material handling | $40,000 |
Machine maintenance | 25,500 |
Cost drivers |
|
Number of material moves | 800 |
Number of machine hours | 75,000 |
Required:
1.Calculate Titan's activity rate for each cost pool.
2. Determine the amount of overhead assigned to Titan's products if they have the following requirements:
| Product A | Product B |
Number of material moves | 500 | 300 |
Number of machine hours | 42,000 | 33,000 |
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