Use the activity rates to apply indirect costs. Then add material and labor. I p

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Use the activity rates to apply indirect costs. Then add material and labor.

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Use the activity rates to apply indirect costs. Then add material and labor.

Activity rates for this company are as follows: Assembly --$12.66 per MH Processing orders $32.93 per order Inspection -$75.60 Use the above information and the following for this question. You do not need to use dollar signs or commas in your answer. Round to the nearest dollar. Data concerning one of the company's products. Product on W·appear below. Selling price per uni. $88.20 $88.20 $15.62 Direct labor cost per unit. S12.80 300 870 90 30 Direct materials cost per unit. uction and sales0 Annual unit production and sales Annual machine-hours Annual orders. Annual inspection-hours

Explanation / Answer

Unit Rate Amount Sales 300         88.20          26,460 Direct Material Cost 300         15.62            4,686 Direct Labor Cost 300         12.80            3,840 Indirect Cost Assembly 870         12.66          11,014 Processing 90         32.93            2,964 Inspection 30         75.60            2,268 Total Indirect Cost          16,246 Total Cost          24,772 Net Income            1,688

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