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Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows:

1	Assembly Department	$252,230.00
2	Test and Pack Department	203,370.00
3	Total	$455,600.00

The direct labor information for the production of 7,550 units of each product is as follows:

	Department
	Assembly	Test and Pack
Blender	605 dlh	2,380 dlh
Toaster oven	2,615	750
Total	3,220 dlh	3,130 dlh

Four Finger Appliance used direct labor hours to allocate production department factory overhead to products.

The management of Four Finger Appliance Company has asked you to use activity-based costing instead of direct labor hours to allocate factory overhead costs to the two products. You have determined that $71,910 of factory overhead from each of the production departments can be associated with setup activity ($143,820 in total). Company records indicate that blenders required 133 setups, while the toaster ovens required only 47 setups. Each product has a production volume of 7,550 units.

Required:

Complete the Activity Tables for blenders and toaster ovens. a. Determine the three activity rates (assembly, test and pack, and setup).* b. Determine the total factory overhead and factory overhead per unit allocated to each product using the activity rates in (a).* *If required, round all per-unit answers to the nearest cent b. Determine the total factory overhead and factory overhead per unit allocated to blenders product using the activity rates in (a).* *If required, round all per-unit answers to the nearest cent. Blender Activity Activity- Base Activity Activity Usage X Rate = Cost Assembly activity Test and pack activity Setup activity Total Units Factory overhead cost per unit Complete the Activity Table for toaster ovens. a. Determine the three activity rates (assembly, test and pack, and setup). Enter these rates in the Activity Rate column.* b. Determine the total factory overhead and factory overhead per unit allocated to toaster ovens product using the activity rates in (a).* *If required, round all per-unit answers to the nearest cent. Toaster Oven Activity Activity- Base Activity Activity Usage X Rate = Cost Assembly activity Test and pack activity Setup activity Total Units Factory overhead cost per unit

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