Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows:
The following activity data have been collected:
Calculate the activity rates that would be used to assign costs to each product. If required, round your answers to the nearest cent.
|Cutting:||$___________ per cutting hour|
|Assembling:||$___________ per assembling hour|
|Inspecting:||$____________per inspecting hour|
|Reworking:||$___________ per reworking hour|
|Activity Cost Pool||Total Cost||Activity Drivers of Vaquero (a)||Activity Drivers of Vaquera (b)||Total Activity drivers (a+b)||Activity Rates (Total Cost/Total Activity drivers)||Activity Measure|
|Cutting hours||195,000||2,100||5,400||7,500||26.00||per cutting hour|
|Assembly hours||228,000||2,950||4,650||7,600||30.00||per assembling hour|
|Inspection hours||62,600||700||2,430||3,130||20.00||per inspecting hour|
|Rework hours||$52,500||300||450||750||70.00||per reworking hour|
The activity rates that would be used to assign costs to each product:
|Cutting:||$26 per cutting hour|
|Assembling:||$30 per assembling hour|
|Inspecting:||$20 per inspecting hour|
|Reworking:||$70 per reworking hour|
Kindly comment if you need further assistance.
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