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3 Exercise 6.14 Physical Flow, Equivalent Units, Unit Costs, No Beginning WilD Activity-Based Costing Lacy, Inc., produces a subassembly used in the production of hydraulic cylinders, The blies are produced in three departments: Plate Cutting, Rod Cutting, and Weldin are added at the beginning of the process. Overhead is applied using the followi activity rates: ng Actual Usage (by Plate Cutting) Driver Rate Direct labor cost Inspection hours Purchase orders 150% of direct labor $40 per hour $1,000 per order S 732,000 7,450 hours 800 orders Other data for the Plate Cutting Department are as follows: Beginning work in process Units started Direct materials cost Units, ending work in process (100% 750,000 $6,000,000 50,000 materials; 64% conversion) 3 Exercise 6.14 Physical Flow, Equivalent Units, Unit Costs, No Beginning WilD Activity-Based Costing Lacy, Inc., produces a subassembly used in the production of hydraulic cylinders, The blies are produced in three departments: Plate Cutting, Rod Cutting, and Weldin are added at the beginning of the process. Overhead is applied using the followi activity rates: ng Actual Usage (by Plate Cutting) Driver Rate Direct labor cost Inspection hours Purchase orders 150% of direct labor $40 per hour $1,000 per order S 732,000 7,450 hours 800 orders Other data for the Plate Cutting Department are as follows: Beginning work in process Units started Direct materials cost Units, ending work in process (100% 750,000 $6,000,000 50,000 materials; 64% conversion)

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