E4-6 (Algo) Calculating Activity Rates, Assigning Costs [LO 4-3,4-4] Fellar Corporation has identified the following information: Activity pools Materials handling $ 39,840 Machine maintenance $ 27, 200 Cost drivers Number of material moves 830 Number of machine hours 68,000 Required: Calculate the activity rate for each activity pool. Determine the amount of overhead assigned to Fellar's products if they have the following activity demands: Product A Product B Number of material moves 650 180 Number of machine hours 41,900 26,100 Using activity proportions, determine the amount of overhead assigned to Fellar's products.
E4-6 (Algo) Calculating Activity Rates, Assigning Costs [LO 4-3,4-4] Fellar Corporation has identified the following information: Activity pools Materials handling $ 39,840 Machine maintenance $ 27, 200 Cost drivers Number of material moves 830 Number of machine hours 68,000 Required: Calculate the activity rate for each activity pool. Determine the amount of overhead assigned to Fellar's products if they have the following activity demands: Product A Product B Number of material moves 650 180 Number of machine hours 41,900 26,100 Using activity proportions, determine the amount of overhead assigned to Fellar's products.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am. 122.
![E4-6 (Algo) Calculating Activity Rates, Assigning Costs [LO 4-3,4-4]
Fellar Corporation has identified the following information:
Activity pools
Materials handling $ 39,840
Machine maintenance $ 27, 200
Cost drivers
Number of material moves 830
Number of machine hours 68,000
Required:
Calculate the activity rate for each activity pool.
Determine the amount of overhead assigned to Fellar's products if they have the following activity demands:
Product A Product B
Number of material moves 650 180
Number of machine hours 41,900 26,100
Using activity proportions, determine the amount of overhead assigned to Fellar's products.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F20e432ec-774a-4870-8123-3c5e595a55a3%2F8762a19e-d818-464e-b3ef-2884b126a309%2Foykrkv8_processed.png&w=3840&q=75)
Transcribed Image Text:E4-6 (Algo) Calculating Activity Rates, Assigning Costs [LO 4-3,4-4]
Fellar Corporation has identified the following information:
Activity pools
Materials handling $ 39,840
Machine maintenance $ 27, 200
Cost drivers
Number of material moves 830
Number of machine hours 68,000
Required:
Calculate the activity rate for each activity pool.
Determine the amount of overhead assigned to Fellar's products if they have the following activity demands:
Product A Product B
Number of material moves 650 180
Number of machine hours 41,900 26,100
Using activity proportions, determine the amount of overhead assigned to Fellar's products.
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