Elmwood Company Has Identified Seven Activities as Part of Its

Essay

Elmwood 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 Elmwood'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
$20,000
Design time
1,600 hours
2,400 hours
a.
b.
c.
Preparation
$12,000
Labor hours
3,000 hours
d.
e.
$6,000
f.
Machining
$45,000
Machine hours
g.
h.
$9.00/hour
$27,000
i.
Finishing
j.
Batches
100
150
$100/batch
k.
l.
Inspection
m.
Units
n.
o.
$4/unit
$8,000
$6,000
Packaging
p.
Orders
q.
50
$90/order
$13,500
r.
Shipping
$5,000
Packages
70
s.
t.
u.
$1,500