Business, 18.02.2021 21:20 maskoffvon

Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2300 units, while 1400 units of blenders are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require 1 direct labor hours per unit. The total estimated overhead for the period is $145,315. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools: Expected activity
Activity cost pool Estimated
overhead
cost Toasters Blenders Total
Setup costs $8585 235 batches 450 batches 685 batches
Engineering costs $67,980 820 engineering 830 engineering hours 1650 engineering hrs
Maintenance costs $68,750 2790 direct labor hours 1095 direct labor hours 3885 direct labor hours
Total $2300
The cost pool activity rate for Engineering Costs would be closest to (Round all answers to two decimal places.)

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Vandalay Industries manufactures two products: toasters and blenders. The annual production and sale...

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