Calculating Activity Rates, Assigning Costs
Refer to the information about Rawlings Corp. presented in E4-7. Rawlings has identified the following detailed information about its cost pools and cost drivers.
Cost pools |
|
Material handling | $60,000 |
Machine maintenance | $15,000 |
Cost drivers |
|
Number of material moves | 500 |
Number of machine hours | 46,000 |
1.Calculate Rawlings' activity rate for each cost pool.
2. Determine the amount of overhead assigned to Rawlings' products if they have the following requirements:
| Product A | Product B |
Number of material moves | 200 | 300 |
Number of machine hours | 17,000 | 29,000 |
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