Magnolia Company has identified seven activities as part of its manufacturing pr

Question

Magnolia Company has identified seven activities as part of its manufacturing process and chosen corresponding activity drivers for each activity. The chart below lists the total cost of each activity, the amount of activity driver used for each of Magnolia's two products, the activity rate, and the activity cost assigned to each product Fill in the blanks below: Driver Usage Activity Cost:Prod.1 Cost:Prod. 2 Activity ActivityCostActivity Driver Prod.1 Prod. 2 Activity Rate Design Preparation 25,160 Labor hours 3,200 Machining$139,590 Machine hours Finishing Inspection Packaging Shipping 13,755 Packages 57,500 Design time 920 1,380 hour hour12,800 $44,280 Batches Units Orders 27 | hour 46 /batch 13 /unit 204320S 8,450$ 13,260 51$312 order $ 13,416 package 86 4,725

Explanation / Answer

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Driver Usage Activity Cost Activity driver Prod.1 Prod.2 Activity rate Activity cost product 1 Actiivty cost product 2 Design 57500 Design time 920 1380 25 / hour 23000 34500 Preparation 25160 Labour hours 3200 3090 4 /hour 12800 12360 Machining 139590 Machine hour 1640 3530 27 / hour 44280 95310 Finishing 24104 Batches 204 320 46 /batch 9384 14720 Inspection 21710 Units 650 1020 13 /unit 8450 13260 Packaging 29328 Orders 43 51 312 /order 13416 15912 Shipping 13755 Packages 86 45 105 /packages 9030 4725

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