meanwhile company produces three models of aluminum skateboards 544639

Activity Cost Rates

Meanwhile Company produces three models of aluminum skateboards. The models have minor differences, but their processing operations and production costs are identical. During June, these costs were incurred:

For June, output totaled 32,000 skateboards. Each board required 1.5 machine hours of effort. During June, Mean while’s assembly line worked 2,304 hours, performed 370 setups and 64,000 product tests, and completed an order for 1,000 skateboards placed by Whatever Toys Company. The job incurred costs of $5,200 for direct materials and $2,500 for purchased parts. It required 3 setups, 2,000 tests, and 72 assembly line hours.

Required

1. Compute the following activity cost rates:

a. Materials handling cost rate

b. Assembly line cost rate

c. Setup cost rate

d. Product testing cost rate

e. Building occupancy cost rate

2. Prepare a bill of activities for the Whatever Toys job.

3. Use activity-based costing to compute the job’s total cost and product unit cost. (Round your answer to two decimal places.)