A company produces pool pumps. Overhead costs have been identified as follows:
Activity Pool Cost
Material handling $
Machine maintenance
Setups
Cost Driver Total Activity
Number of moves
Number of machine hours
Number of production runs
The company makes three models of pumps with the following activity demands:
Economy Standard Premium
Units produced
Number of moves
Machine hours
Production runs
Required:
Calculate the activity rate for each activity.
Determine the amount of indirect costs assigned to each of the products.
