Compute the activity cost rates for materials handling assembly and design based on the data that follows.Materials:Cloth-$26000Fasteners-4000Purchased handling-40000Material handling:Labor-8000Equipment depreciation-5000Electrical power-2000Maintena
Compute the activity cost rates for materials handling assembly and design based on the data that follows.Materials:Cloth-$26000Fasteners-4000Purchased handling-40000Material handling:Labor-8000Equipment depreciation-5000Electrical power-2000Maintenance-6000Assembly:Machine operators-5000Design:Labor-5000Electrical power-1000Overhead-8000Output 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 divided total allocation base. Examples of an allocation base include total dollars of materials total machine operator hours or total unit of output.)