Ask Question
8 February, 22:25

Rizzo Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:Product Machine Hours Setups Receiving Orders Packing Orders 35mm 10,000 100 200 400

Digital 10,000 250 800 2000

Cost $60,000 $40,000 $8,000 $24,000

A. Calculate the total overhead assigned to each the 35mm camera using only machine hours to calculate a plant-wide rate.

B. Using an activity rate for receiving based on receiving orders, assign receiving costs to the 35mm camera.

C. Calculate an activity rate for packing based on packing orders.

+4
Answers (1)
  1. 9 February, 01:43
    0
    Total overhead assigned to each the 35mm camera $ 66,000

    An Activity Rate for receiving $8 per receiving order

    Receiving costs for 35mm camera $1600

    An Activity Rate for packing $ 10 per packing order

    Explanation:

    Product Machine Hours Setups Receiving Orders Packing Orders

    35mm 10,000 100 200 400

    Digital 10,000 250 800 2000

    Cost $60,000 $40,000 $8,000 $24,000

    Total Overhead Costs = $ 60,000 + $ 40,000 + $ 8000 + $ 24,000 = $132,000

    Total overhead assigned to each the 35mm camera = (Total Costs/Total Machine Hours) * 35mm camera machine hours

    Total overhead assigned to each the 35mm camera = ($ 132,000 / 20,000) 10,000 = $ 66,000

    An Activity Rate for receiving based on receiving orders = 8000/1000 = $8 per receiving order

    Receiving costs for 35mm camera = 8 * 200 = $1600

    An Activity Rate for packing based on packing orders = 24000 / 2400 = $ 10 per packing order
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Rizzo Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers