Question

Magenta Company has identified seven activities as part of its manufacturing process and chosen corresponding activity...

Magenta Company has identified seven activities as part of its manufacturing process and chosen corresponding activity drivers for each activity. The chart below lists the total cost of each activity, the proportion of activity driver used for each of Magenta’s two products, and the activity cost assigned to each product.

Fill in the blanks below: (Round your answers to the nearest whole number.)

Proportion Used By
Activity Cost Activity Driver Prod. 1 Prod. 2 Activity Cost:Prod. 1 Activity Cost:Prod. 2
Design $40,900 Design time 57 % 43 % $23,313 $17,587
Preparation $18,100 Labor hours 56 % % $10,136
Machining $91,400 Machine hours 45 % % $41,130
Finishing $25,100 Batches 49 % % $12,299
Inspection Units % % $4,326 $5,974
Packaging Orders % 20 % $14,080
Shipping $11,300 Packages 70 % 30 % $7,910 $3,390

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