Burr Company has identified seven activities as part of its manufacturing process and chosen corresponding activity drivers for each activity. The chart below lists the total cost of each activity, the amount of activity driver used for each of Burr's two products, the activity rate, and the activity cost assigned to each product.
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Driver Usage
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| Activity |
Cost |
Activity
Driver |
Prod. 1 |
Prod. 2 |
Activity
Rate |
Activity Cost:
Prod. 1 |
Activity Cost:
Prod. 2 |
| Design |
$ |
53,520 |
Design time |
960 |
|
1,270 |
|
$ |
|
/hour |
$ |
|
$ |
|
| Preparation |
$ |
31,050 |
Labor hours |
3,030 |
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|
$ |
|
/hour |
$ |
15,150 |
$ |
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| Machining |
$ |
137,430 |
Machine hours |
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|
$ |
27.00 |
/hour |
$ |
42,120 |
$ |
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| Finishing |
$ |
|
Batches |
205 |
|
320 |
|
$ |
42 |
/batch |
$ |
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$ |
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| Inspection |
$ |
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Units |
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|
$ |
16 |
/unit |
$ |
10,400 |
$ |
19,040 |
| Packaging |
$ |
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Orders |
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51 |
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$ |
302 |
/order |
$ |
11,778 |
$ |
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| Shipping |
$ |
14,410 |
Packages |
87 |
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$ |
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/package |
$ |
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$ |
4,840 |