Business, 16.03.2020 19:33 pg67891012345

Teampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: Fabrication Department Finishing Department Cost Driver Maintenance $96 ,000 48,000 Machine hours Materials handling 144,000 72,000 Material moves Machine 336,000 24,000 Machine setups Inspections - 120,000 Inspection hours Total $ 576,000 $264 ,000 The following activity predictions were also made for the year: Fabrication Department Finishing Department Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25 Inspection hours - 500 It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, SW100 and SG150. The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates of activity-based rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models:

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Teampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the gi...

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