Answered

IDNLearn.com provides a comprehensive solution for all your question and answer needs. Find reliable solutions to your questions quickly and easily with help from our experienced experts.

Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are:
Compute the overhead rate for each activity. Round your answers to two decimal places.
Activity Overhead per Activity Annual Usage Overhead Rate per Activity
Machine Setups $158,875 4,100
Machine Hours 352,775 14111
Inspections 120,750 3,500

Sagot :

Abiolataiwo2015idn

Answer:

Machine Setups 38.75 per set up

Machine Hours 25.00 per machine hour

Inspections 34.50 per inspection

Explanation:

Computation for the overhead rate for each activity.

Activity Overhead per Activity Annual Usage Overhead Rate per Activity

Machine Setups $158,875 ÷4,100=38.75 per set up

Machine Hours 352,775÷14111=25.00 per machine hour

Inspections 120,750÷ 3,500=34.50 per inspection

Therefore the overhead rate for each activity will be:

Machine Setups 38.75 per set up

Machine Hours 25.00 per machine hour

Inspections 34.50 per inspection

We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. IDNLearn.com is committed to your satisfaction. Thank you for visiting, and see you next time for more helpful answers.