I am doing an activity table on ovens. I know the formula is: activity pool cost / activity base = activity rate 63237 / 370 =171 when I do this and get my numbers the system to input out findings says my numbers are wrong. we use the cengage. I don't know what I am doing wrong? I have pasted the numbers below. Please help. Beth McDonald Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows: 1 Activity Activity Pool Cost Activity Base 2 Procurement $63,237.00 Number of purchase orders 3 Scheduling 3,933.00 Number of production orders 4 Materials handling 13,032.00 Number of moves 5 Product development 7,035.00 Number of engineering changes 6 Total cost $87,237.00 The estimated activity-base usage and unit information for two product lines was determined as follows: Number of Purchase Orders Production Orders Moves Engineering Change Orders Units Ovens 370 126 204 60 638 Refrigerators 221 81 158 45 627 Totals 591 207 362 105 1,265 Required: Complete the Activity Tables for ovens and refrigerators. a. Determine the activity rate for each activity cost pool. Enter these rates in the Activity Rate columns. b. Use the activity rates in (a) to determine the activity-based cost per unit of each product. Round the per-unit rates to the nearest cent. Activity Table - Ovens Shaded cells have feedback. Complete the Activity Table for ovens. a. Determine the activity rate for ovens activity. Enter these rates in the Activity Rate column. b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with ovens product. Round the per-unit rates to the nearest cent.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...

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I am doing an activity table on ovens. I know the formula is:

activity pool cost / activity base = activity rate

63237 / 370 =171

when I do this and get my numbers the system to input out findings says my numbers are wrong. we use the cengage.

I don't know what I am doing wrong?

I have pasted the numbers below. Please help.

Beth McDonald

Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows:

1	Activity	Activity Pool Cost	Activity Base
2	Procurement	$63,237.00	Number of purchase orders
3	Scheduling	3,933.00	Number of production orders
4	Materials handling	13,032.00	Number of moves
5	Product development	7,035.00	Number of engineering changes
6	Total cost	$87,237.00

The estimated activity-base usage and unit information for two product lines was determined as follows:

	Number of
	Purchase Orders	Production Orders	Moves	Engineering Change Orders	Units
Ovens	370	126	204	60	638
Refrigerators	221	81	158	45	627
Totals	591	207	362	105	1,265

Required:

Complete the Activity Tables for ovens and refrigerators.

a.	Determine the activity rate for each activity cost pool. Enter these rates in the Activity Rate columns.
b.	Use the activity rates in (a) to determine the activity-based cost per unit of each product. Round the per-unit rates to the nearest cent.

Activity Table - Ovens

Shaded cells have feedback.

Complete the Activity Table for ovens.

a.	Determine the activity rate for ovens activity. Enter these rates in the Activity Rate column.
b.	Use the activity rates in (a) to determine the total and per-unit activity costs associated with ovens product. Round the per-unit rates to the nearest cent.

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