Compute the activity cost rates for materials handling assembly and design based on these data:
Materials
Cloth 26000
Fasteners 4000
Purchased parts 40000 Materials handling
Labor 8000
Equipment depreciation 5000
Electrical power 2000
Maintenance 6000 Assembly
Machine operations 5000 Design
Labor 5000
Electrical power 1000
Overhead 8000 Output totaled 40000 units. Each unit requires three machine hours of effort. Materials handling costs are allocated to the products based on direct materials
cost. Design costs are allocated based on units produced. Assembly costs are allocated based on 500 machine operator hours. (Hint: activity cost rate = total
activity costs/total allocation base. Examples of an allocation base include total dollars of materials total machine operator hours or total units of
output).