The total factory overhead for Diva-nation is budgeted for the year at $165,788, divided into four activities: cutting, $18,553; sewing, $31,840; setup, $86,190; and inspection, $29,205. Diva-nation manufactures two types of mens pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as follows:
Cutting
Sewing
Setup
Inspection
Jeans
830 dlh
1,200 dlh
1,175 setups
2,995 inspections
Khakis
1,220
790
1,035
1,955
2,050 dlh
1,990 dlh
2,210 setups
4,950 inspections
Each product is budgeted for 15,000 units of production for the year.
Required:
Complete the Activity Tables for jeans and khakis.
A.
Determine the activity rates for each activity. Enter these rates in the Activity Rate columns.*
B.
Use the activity rates in (A) to determine the activity-based factory overhead per unit for each product.*
* When required, round all per-unit and activity rate answers to the nearest cent.
Activity Table - Jeans
Complete the Activity Table for Jeans.
A.
Determine the activity rates for each activity. Enter these rates in the Activity Rate columns.
B.
Use the activity rates in (A) to determine the activity-based factory overhead per unit for each product.
* When required, round all per-unit and activity rate answers to the nearest cent.
Jeans
Activity
Activity-
Base
Activity
Activity
Usage
X
Rate
=
Cost
Cuttting
Sewing
Setup
Inspections
Total
Budgeted items
Factory overhead per unit
Activity Table - Khakis
Complete the Activity Table for khakis.
A.
Determine the activity rates for each activity. Enter these rates in the Activity Rate columns.
B.
Use the activity rates in (A) to determine the activity-based factory overhead per unit for each product.
* When required, round all per-unit and activity rate answers to the nearest cent.
Khakis
Activity
Activity-
Base
Activity
Activity
Usage
X
Rate
=
Cost
Cuttting
Sewing
Setup
Inspections
Total
Budgeted items
Factory overhead per unit
Answer & Explanation
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