Question: Rizzo Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:
| Product |
Machine Hours |
Setups |
Receiving Orders |
Packing Orders |
| 35mm |
10,000 |
100 |
200 |
400 |
| Digital |
10,000 |
250 |
800 |
2,000 |
| Costs |
$60,000 |
$40,000 |
$8,000 |
$24,000 |
Calculate an activity rate for packing based on packing orders.