Rhapsody Corporation Manufactures Several Different Products and Uses an Activity-Based

Essay

Rhapsody Corporation manufactures several different products and uses an activity-based costing system.Information from its system for the year for all products follows:
$$\begin{array} { | l | l | r | l | } \hline \text { Activity cast poul } & { \text { Tatal cast } } && { \text { Tatal activity } } \\\hline \text { Assembly } & \$ 120,000 & 12,000 & \text { machine-haurs } \\\hline \text { Pracessing arders } & \$ 80,750 & 4,750 & \text { arders } \\\hline \text { Inspection } & \$ 22,880 & 1,760 & \text { inspection-hours } \\\hline\end{array}$$ The annual production and sales of one of its products,the Sizzler,are 1,000 units.The following data relate to the production and sales of Sizzlers in the most recent year:
$$\begin{array} { | l | r | } \hline \text { Annual machine hours } & 750 \\\hline \text { Annual number of orders } & 180 \\\hline \text { Annual number of inspections } & 350 \\\hline \text { Direct materials cost per unit } & \$ 125.00 \\\hline \text { Direct labor cost per unit } & \$ 67.00 \\\hline\end{array}$$ Required:
1.Calculate the activity cost pool rates for each of the three activity cost pools listed.
2.Calculate the average cost of one Sizzler.