Question

Chipman Inc. produces water pumps. Overhead costs have been identified as follows:      Activity Pool Cost Material...

Chipman Inc. produces water pumps. Overhead costs have been identified as follows:     

Activity Pool Cost
Material handling $ 70,380.00
Material maintenance $ 74,600.00
Setups $ 84,388.00


Activity Driver Activity
Number of moves 460
Number of machine hours 37,300
Number of production runs 68


Chipman makes 3 models of pumps with the following details:

Economy Standard Premium
Units produced 10,150 21,200 3,565
Number of moves 158 132 170
Machine hours 9,250 20,600 7,450
Production runs 24 14 30


Required:

a. Calculate the activity rate for each activity. (Round your answers to 2 decimal places.)
   -Material Handling

   -Material Maintenance

   -Setups


b. Determine the amount of indirect costs assigned to each of the products. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

   -Economy

   -Standard

   -Premium

Business   Accounting   
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