Calculate the cost driver for Basic drink (Please show steps) Based on all

Calculate the cost driver for Basic drink (Please show steps)

Based on all of the date provided compute the cost driver rates for each of the four activities. (Must explain the final values to receive
full points)

Basic

Sales

$ 125000

Direct Materials

$ 40000

Direct Labor

$ 25000

Fringe Benefits on Direct Labor

$ 11250.00

Manufacturing Overhead

$ 43750.00

TOTAL COST

$ 120000.00

Annual Volume:

100000

Unit Price:

$ 1.25

Unit Cost:

$ 1.200

Monthly Charge

Equipment Set-ups

Product Runs

Number of products

Machine Hour capactiy

Indirect Labor

$55000

20%

45%

15%

20%

Fringe Benefits on Indirect Labor

$24750

20%

45%

15%

20%

Utilities

$5000

5%

65%

0%

30%

Processing Equipment- Depreciation

$10000

0%

100%

0%

0%

Preventative Maintenance

$10000

40%

30%

0%

30%

Information Technoloy

$23000

10%

15%

70%

5%

Activity

Basic

Set-ups

15

Production Runs

125

Procution Mgt.

1

Machine-Hour Capacity

9000