Magnolia Company Has Identified Seven Activities as Part of Its

Essay

Magnolia Company has identified seven activities as part of its manufacturing process and chosen corresponding activity drivers for each activity. The chart below lists the total cost of each activity, the amount of activity driver used for each of Magnolia's two products, the activity rate, and the activity cost assigned to each product. Fill in the blanks below:
Activity
Cost
Activity Driver
Driver Usage
Activity Rate
Activity Cost: Prod. 1
Activity Cost: Prod. 2
Prod. 1
Prod. 2
Design
$60,000
Design time
800 hours
1,200 hours
a.
b.
c.
Preparation
$18,000
Labor hours
3,000 hours
d.
e.
$9,000
f.
Machining
$90,000
Machine hours
g.
h.
$18.00/hour
$27,000
i.
Finishing
j.
Batches
200
300
$50/batch
k.
l.
Inspection
m.
Units
n.
o.
$6/unit
$3,000
$6,000
Packaging
p.
Orders
q.
50
$300/order
$13,500
r.
Shipping
$17,000
Packages
70
s.
t.
u.
$3,000