The Manoli Company has collected the following data for use in calculating product costs: Activity...

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Accounting

The Manoli Company has collected the following data for use in calculating product costs: Activity Data: (expected and actual)

Rug Cleaners

Sweepers

Total

Units Produced

50,000

250,000

300,000

Prime Costs

$200,000

$750,000

$950,000

Direct Labor Hours

10,000

40,000

50,000

Machine Hours

20,000

10,000

30,000

Number of Setups

25

75

100

Inspection Hours

1200

,2,800

4,000

Number of Moves

140

210

350

Departmental Data: (expected and actual)

Molding

Assembly

Total

Direct Labor Hours

Rug Cleaners

5,000

5,000

10,000

Sweepers

Total

10,000

40,000

50,000

Machine Hours

Rug Cleaners

17,000

3,000

20,000

Sweepers

3,000

7,000

10,000

Total

20,000

10,000

30,000

Overhead Costs

Machining

$120,000

$30,000

$150,000

Moving Materials

40,000

30,000

70,000

Setting Up

70,000

10,000

80,000

Inspecting Products

20,000

30,000

50,000

Total

$250,000

$100,000

$350,000

What is the activity rate for moving materials?

a.

$1000

b.

0.2

c.

$200

d.

$800

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