Green Mountain Manufacturing Has Recently Installed an Activity-Based Relational Data

Essay

Green Mountain 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: Two products are produced by Green Mountain: Normal and Excellent. Each product has an area in the plant that is dedicated to its production. The plant has two manufacturing processes, the Normal process (Process R) and the Excellent process (Process S). Other processes include engineering, product handling, and procurement. The product relational table for Green Mountain is as follows:
Normal Product:
Excellent Product:
Required:
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.