Elbert Manufacturing Has Recently Installed an Activity-Based Relational Data Base

Essay

Elbert Manufacturing has recently installed an activity-based relational data base.Using the information contained in the activity relational table,the following pool rates were computed:
$$\begin{array} { l l } \$ 400 & \text { per purchase order } \\\$ 24 & \text { per machine hour, Process R } \\\$ 30 & \text { per machine hour, Process S } \\\$ 80 & \text { per enpineering hour } \\\$ 4 & \text { per packing order } \\\$ 200 & \text { per square metre }\end{array}$$ Two products are produced by Elbert: Regular and Super.Each product has an area in the plant that is dedicated to its production.The plant has two manufacturing processes,the regular process (Process R)and the super process (Process S).Other processes include engineering,product handling,and procurement.The product relational table for Elbert is as follows:
$$\begin{array}{l}\text { Regular Praduct: }\\\begin{array} { l l c } { \text { Activit Driver \# and Name } } & \text { Activity Ustape } \\\hline 1 \quad \text { Units } & 800,000 \\2 \quad \text { Purchase orders } & 1,000 \\3 \quad \text { Machine hours } & 320,000 \\4 \quad \text { Engineering hours } & 5,000 \\5 \quad \text { Packing orders } & 400,000 \\6 \quad \text { Square metres } & 6,000 \end{array}\end{array}$$ $$\begin{array} { l } \text { Super Praduct: } \\\begin{array} { c l r } \text { Activit Driver \# and Name } & \text { Activity Ustage } \\\hline 1 \quad \text { Units } & 100,000 \\2 \quad \text { Purchase arders } & 500 \\3 \quad \text { Machine hours } & 40,000 \\4 \quad \text { Enpineering hours } & 6,000 \\5 \quad \text { Packing arders } & 100,000 \\6 \quad \text { Square metres } & 4,000\end{array} \end{array}$$
a.Identify two different concatenated keys.What is the purpose of concatenated keys?
b.Using the pool rates and the information from the product relational table,calculate the unit overhead cost for each product.
c.Does the product relational table indicate how many activities are in each pool? Is this necessary for product costing? Explain.