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.
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