Weisman, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats. Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers per Activity
Designing $448,995 11,100 designer hours
Sizing and cutting 3,960,250 155,000 machine hours
Stitching and trimming 1,491,450 81,500 labor hours
Wrapping and packing 316,575 33,500 finished units

Required:
Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools.

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?