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A company produces pool pumps. Overhead costs have been identified as follows: Activity Pool...

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Accounting

A company produces pool pumps. Overhead costs have been identified as follows:
Activity Pool Cost
Material handling $ 62,775.00
Machine maintenance 75,000.00
Setups 83,776.00
Cost Driver Total Activity
Number of moves 405
Number of machine hours 37,500
Number of production runs 68
The company makes three models of pumps with the following activity demands:
Economy Standard Premium
Units produced 10,14021,7003,520
Number of moves 104132169
Machine hours 9,55020,7007,250
Production runs 231629
Required:
Calculate the activity rate for each activity.
Determine the amount of indirect costs assigned to each of the products.

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