Question
Collins produces two models of dog beds: rectangle and square. The following information about the costs...
Collins produces two models of dog beds: rectangle and square. The following information about the costs to produce the company’s products has been provided.
| Category | Estimated Cost | Cost Driver | Rectangle | Square |
| Unit-Level | $293, 000 | Labor Hours | 200 | 300 |
| Batch-Level | $45, 000 | Inspections | 19 | 15 |
| Product-Level | $390,000 | Storage Space | 2900 sq. ft | 3700 sq.ft |
| Facility-Level | $125,000 | Machine Hours | 4,000 | 7,000 |
a. If all costs are allocated based on machine hours, what is the rate per machine hour?
b. If all costs are allocated based on machine hours, what is the amount allocated to circle dog beds?
c. If ABC uses activity based costing based on the cost pools above, what is the rate for unit-level costs?
d. If ABC uses activity based costing based on the cost pools above, what is the rate for batch-level costs?
e. If ABC uses activity based costing based on the cost pools above, what is the rate for product-level costs?
f. If ABC uses activity based costing based on the cost pools above, what is the rate for facility-level costs?
g. If ABC uses activity based costing based on the cost pools above, what amount is allocated to rectangle beds?
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