Adirondack Corporation is estimating activity costs associated with producing two different sized e-reader tablets. The indirect labor can be traced to three separate activity pools. The budgeted activity cost and activity base information, along with the estimated activity-base information, is provided below. All work must be shown for credit.
|
|
Activity
Cost
|
Activity Base
|
|
|
Purchasing
|
$ 300,000
|
Number of purchase orders
|
|
|
Materials handling
|
500,000
|
Number of moves
|
|
|
Production
|
1,500,000
|
Machine hours
|
|
|
TOTAL $2,300,000
|
|
|
Number of
Purchase
Orders
|
Number
of
Moves
|
Machine
Hours
|
Number
of
Units
|
|
|
7" tablet
|
4,000
|
1,400
|
2,000
|
2,000
|
|
|
10' tablet
|
4,000
|
800
|
8,000
|
4,000
|
|
|
TOTALS
|
8,000
|
2,200
|
10,000
|
6,000
|
|