Question - Odd Squad Cat Corporation manufactures treadmills using and activity-based costing system. The following is available for August:
Activity Total Budgeted Cost Allocation Base Estimated Quantity of Allocation Base
Materials handling $9,064 Number of parts 6,400 parts
Machining $14,880 Machine hours 1,200 hours
Assembling $11,648 Number of parts 6,400 parts
Packaging $4,150 Number of finished units 200 units
Each treadmill consists of 32 parts and requires 6 hours of machine time to produce. The direct materials cost per treadmill is $245.
Compute the cost allocation rate for each of the four activities?
Compute the average manufacturing cost of each treadmill?