Hipster Home Appliances Inc. is estimating the activity cost
associated with producing ovens and refrigerators. The indirect
labor can be traced into four separate activity pools, based on
time records provided by the employees. The budgeted activity cost
and activity-base information are provided as follows:

Never use plagiarized sources. Get Your Original Essay on
Question: Hipster Home Appliances Inc. is estimating the activity cost associated with producing ovens and …
Hire Professionals Just from $11/Page
Order Now Click here

1

Activity

Activity Pool Cost

Activity Base

2

Procurement

$63,237.00

Number of purchase orders

3

Scheduling

3,933.00

Number of production orders

4

Materials handling

13,032.00

Number of moves

5

Product development

7,035.00

Number of engineering changes

6

Total cost

$87,237.00

The estimated activity-base usage and unit information for two
product lines was determined from corporate records as follows:

Number of
Purchase Orders Production Orders Moves Engineering Changes Units
Ovens 370 126 204 60 638
Refrigerators 221 81 158 45 627
Totals 591 207 362 105 1,265
Required:
Complete the Activity Tables
for ovens and refrigerators.

A. Determine the activity rate for
each activity cost pool. Enter these rates in the Activity Rate
columns.
B. Use the activity rates in (A)
to determine the activity-based cost per unit of each product.
Round the per-unit rates to the nearest cent.

Open chat
Lets chat on via WhatsApp
Hello, Welcome to our WhatsApp support. Reply to this message to start a chat.