Business, 13.03.2020 01:55 yurionice42069
The total factory overhead for Norton Company is budgeted for the year at $300,000, divided into three activities: assembly, $200,000; setup, $50,000; and materials handling, $150,000. Norton manufactures two products: Product A and Product B. The activity-based usage quantities for each product by each activity are estimated as follows:
Assembly Setup Materials Handing
Product A 5,000 dlh 60 setups 25 moves
Product B 15,000 dlh 110 setups 250 moves
Total activity-base usage 20,000 dlh 170 setups 275 moves
Determine the activity rate for the setup activity (round to nearest dollar).
a. $15.00
b. $16.67
c. $25.00
d. $1.67
Answers: 2
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