Assigning Costs Using Activity Rates
Refer to the information presented in E4-3. Suppose that Francis Company manufactures three products, A, B, and C. Information about these products follows:
| Product A | Product B | Product C |
Number of machine hours | 30,000 | 40,000 | 10,000 |
Number of design hours | 3,200 | 1,800 | 3,000 |
Number of batches | 50 | 75 | 275 |
Required:
1.Considering the information about these three products, comment on the likely complexity of the manufacturing process for each.
2. Using the activity rates calculated in E4-3. determine the amount of overhead assigned to each product.
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