1 answer

Pecan Inc. produces water valves. Overhead costs have been identified as follows: Activity Pool Quality control...

Question:

Pecan Inc. produces water valves. Overhead costs have been identified as follows: Activity Pool Quality control Machine maint
Required: a. Calculate the activity rate for each activity. (Round your answers to 2 decimal places.) Cost Activity Rate Qual
Pecan Inc. produces water valves. Overhead costs have been identified as follows: Activity Pool Quality control Machine maintenance Setups Cost $ 59,570 $108,300 $ 91,500 Activity Driver Number of inspections Number of machine hours Number of production runs Activity 185 19,000 60 Pecan makes 3 models of valves with the following details: Units produced Number of inspections Machine hours Production runs Economy 20,000 5 4,500 5 Standard 40,000 40 12,000 20 Premium 7,000 140 2,500 35
Required: a. Calculate the activity rate for each activity. (Round your answers to 2 decimal places.) Cost Activity Rate Quality Control Machine maintenance Setups b. Determine the amount of Indirect costs assigned to each of the products. (Do not round your intermediate calculations.) Cost Models Economy Standard Premium

Answers

А B 1 a) 2 Activity rate Cost 3 Quality Control $ 322.00 4 Machine maintenance $ 5.70 5 Setups $ 1,525.00 6 7 b) 8 Models Cos

A B 1 a) 2 Activity rate Cost 3 Quality Control =59570/185 4 Machine maintenance =108300/19000 5 Setups =91500/60 6 7 b) 8 Mo

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